Negotiations on the new Russia-Cyprus DTT which will replace the 1981 DTT in force are expected to continue in 1998. It may be expected that the Russian government will bring taxation rules for dividends in line with other tax treaties concluded recently (e.g.. introducing relatively low rate of 5 %) but will leave exemptions for interest and royalties in place.
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For further information contact Alla Shaulina on tel: +7 503 232 5511 fax: +7 503 232 5522 or e-mail directly: Alla_Shaulina@ru.coopers.com
