Russia, UAE to hold new round of talks on tax treaty in coming month
MOSCOW. Sept 19 (Interfax) - Russia and the United Arab Emirates will hold the next round of negotiations on a double taxation agreement within the next month, Deputy Finance Minister Alexei Sazanov told reporters.
"We are holding negotiations with the UAE. We are moving positions closer. The next round will be held within the next month," he said.
He recalled that an agreement has been signed with Oman and it will soon be ratified. Negotiations have also concluded with Malaysia on revising the existing agreement.
Asked if there might yet be discussion of revisions to existing or signing of new agreements with any jurisdictions, Sazanov said that if Russian businesses want negotiations to be held with someone else "we are open."
The agreement with Oman sets a general tax rate at the source on dividend income at 15% and a reduced rate of 10% on the dividend income of companies that own at least a 20% equity stake in companies that pay these dividends in the course of the year. The tax rate on interest income is also set at 10%.
The agreement also provides an exemption from tax at the source on dividend and interest income for government entities, state companies and other forms of government investment. The tax rate on royalties is set at 10%.
The agreement includes provisions for payment of taxes on income from disposal of shares and similar rights represented by real estate where it is located.