Duma ratifies amendments on tax info exchange between Russia, Cyprus
MOSCOW. Feb 15 (Interfax) - Russia's State Duma on Wednesday ratified a protocol of amendments to the agreement between Russia and Cyprus on avoiding double taxation.
The document was signed on October 7 2010 after negotiations between Russia and Cyprus during Russian President Dmitry Medvedev's visit to Cyprus.
The amendments concern taxation regulations and expanding exchange of information between Russia and Cyprus. They aim to reduce opportunities for tax evasion in Russia by Cypriot companies, which often belong to Russians, government materials show.
The protocol says that the relevant authorities in Russia and Cyprus should exchange information of any form and content that can be considered relevant to the implementation of the agreement on avoiding double taxation or to the administration and application of domestic legislation regarding taxes.
Deputy Finance Minister Sergei Shatalov said at the Duma session that the actual agreement with Cyprus has been in force since 1998. "But there were certain problems associated with the fact that our tax authorities did not obtain all the information requested. After long talks, Russia and Cyprus agreed to add a protocol to the agreement that, in our opinion, resolves very important issues," he said.
The State Duma also ratified the Convention between Russia and Chile about avoiding double taxation and preventing tax evasion. The document was signed in Santiago on November 19 2004. The Convention was compiled on the basis of a draft model agreement on avoiding double taxation of revenue and property, and the draft model recommended by the Organization for Economic Cooperation and Development and the United Nations.