Luxembourg, Russia Agree Amendments To Double Tax Treaty

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  • Can have benefits for Russian companies setting up in Asia  

Luxembourg has ratified the protocol on amendments to the double taxation agreement with Russia. Provisions of the protocol will apply from January 1, 2022, the Russian Finance Ministry said on Friday.

“Russia has received a notice on completion of all ratification procedures by the partners. The protocol will therefore come into force on March 5, 2021 and its provisions will be applied from January 1, 2022. The protocol provides for an increase of the withholding tax rate to 15% for gains in the form of dividends and interest with certain exceptions for institutional investments and public companies,” the Ministry added.

Russia completed all the required procedures for the protocol ratification and notified Luxembourg to that effect in late 2020. In 2020, protocols on similar amendments to tax conventions were signed with Cyprus and Malta.

The use of offshore centres such as these are convenient tools for Russian companies wishing to invest overseas as they can reduce taxes against profits and assist with the corporate formation and bank account opening, and especially in Asia with the Russia-Hong Kong DTA.

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Russia Briefing is written by Dezan Shira & Associates. The firm has 28 offices throughout Eurasia, including China, Russia, India, and the ASEAN nations, assisting foreign investors into the Eurasian region. Please contact Maria Kotova at for Russian investment advisory or assistance with market intelligence, legal, tax and compliance issues throughout Asia.

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