Protocol to The Treaty Between Cyprus and Russia Signed

On the 16^th of April 2009, the governments of Cyprus and Russia initialed a Protocol to amend the Double Taxation Treaty (DTT) of 1998 between Cyprus and Russia. The Final version of the protocol has been signed on the 7^th of October 2010. The new Protocol has received much publicity in recent months and this is not surprising since it promises to bring about changes in the current taxation regime between the two countries. Although the 1998 DTT created a reciprocal trading and investment relationship between the two Countries, Cyprus was included in 2008 in the Russian Tax Authorities "List of Offshore States" amongst 53 countries. The Russian black list essentially barred Cypriot subsidiaries of Russian Companies to obtain a tax exemption on their dividends.