August 10th, 2023,

A Russian Presidential Decree has suspended substantial articles from existing double tax treaties (DTTs) concluded between Russia with about 40 “unfriendly” states, including the Cyprus-Russia Double Tax treaty.

The suspended articles regarding the DTT with Cyprus are 5 to 22, 24, 27 and 29, and their suspension of key articles applies to payments as of August 8th, 2023.

The Decree was promulgated on August 8th, 2023, as a response to the inclusion of Russia in the EU’s “Blacklist” referring to jurisdictions that do not cooperate with the EU on tax matters.

As a result of the above, lower withholding taxes or tax exemptions on passive income or income from employment no longer apply.