Cyprus is not in “black list” of Russia any more

«The consequences of changes of the Additional Resolution to the DTA between Government of Russian Federation and the Government of Cyprus we can estimate only over some time.

One of the obvious changes at the moment is a change of “Black list” of the Ministry of Finance (the Order of the Russian Finance Ministry of 21.08.2012 № 115n).

But I want to draw your attention to the following changes: now Russian companies will receive dividends from Cyprus subsidiaries rated 0% tax (Item 3 of Art. 284 of the Russian Tax Code) instead of 9% that was before.

Even this single fact creates extremely favorable conditions for the entry funds of Cyprus companies to Russia.

Accordingly, I can forecast an increase of number of Cyprus companies with official Russian residents as shareholders.

Business with Cyprus becoming safer: the official possession of Cypriot companies no longer need to use everywhere nominee directors and nominee shareholders.

Well, and because it is profitable to open Cypriot subsidiaries and it is safe to take these assets on the balance sheet cash traffic between Cyprus and Russia will only intensify.

Changes to the DTA between the Government of the Russian Federation and the Government of the Republic of Cyprus have given great tools to conduct a clean and legitimate tax planning with the simultaneous use of the advantages traditionally loyal and low-tax legislation of Cyprus».