Russia and Luxembourg agreed to increase taxes on dividends

According to the Russian Ministry of Finance, on November 06, 2020, a protocol was signed to amend the double taxation agreement between Russia and Luxembourg in terms of increasing the withholding tax rate to 15% on income in the form of dividends and interest.

Also, the finance department announces that there are exceptions to the general rules, according to which a preferential rate of 5% will be applied to income in the form of dividends and interest. Exceptions are provided for institutional investments, as well as for public companies, at least 15% of whose shares are in free float, and owning at least 15% of the capital of the company paying the specified income during the year.