On September 09, 2020 the Russian government approved the draft protocol on the amendments to the Double Tax Treaty with Malta. It provides for the increase of withholding tax on dividends and interest to 15%. Preferential rate of 5% will apply to dividends and interest paid to institutional investors and public companies under certain conditions as well as interest paid under government bonds, corporate bonds and Eurobonds listed on a stock exchange.
Similar amendments were agreed upon with Cyprus and await the approval from Luxemburg and the Netherlands. Renegotiation of the relevant protocols should be completed by the end of 2020. Updated rates would come into force on January 01, 2021.
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NAZALI TAX & LEGAL |