Cyprus-Russia Protocol ratified by Russian Duma

On the 15th of February 2012, the Russian Duma has ratified the amending Protocol to the Cyprus-Russia Double Tax Treaty of 1998, signed on the 7th of October 2010. Cyprus has also ratified this Protocol earlier in August 2011.

By ratifying this Protocol Cyprus has been removed from the Russian "black" list. Now it will be allowed for dividends paid from Cyprus tax resident companies and received from the Russian corporate shareholders to qualify for the Russian participation exemption and thus be exempt from Russian tax.  This is expected to create new opportunities for Russian investors for the use of Cyprus companies and funds.