Russia, Cyprus postpone tax treaty protocol provision on capital gains

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Cyprus’ Ministry of Finance has announced a delay in the application of a 2010 protocol amendment to article 13 of the tax treaty between Russia and Cyprus concerning the tax treatment of capital gains. The application of the provision has been postponed by mutual agreement of the two countries, the Ministry said.

According the announcement, made December 29, the two countries intend to finalize an additional protocol which provides for the application of the revised article 13 provisions once similar provisions are added to Russian bilateral tax treaties with other EU countries.

Article 13 provides that taxation of gain from the disposal of shares of companies deriving more than 50% of their value from immovable property could be taxed in country where the immovable property is situated.

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