Russian government approves amendments to agreement with Armenia on removal of double taxation
04.05.2011,
00:47
Russia’s government has approved the protocol on amending the agreement with Armenia on removal of double taxation on income and property and instructed the finance ministry to sign this protocol.
YEREVAN, May 3. /ARKA/. Russia’s government has approved the protocol on amending the agreement with Armenia on removal of double taxation on income and property and instructed the finance ministry to sign this protocol, RIA Novosti reports referring to the order placed Tuesday in the Russian Cabinet’s database.
This document dated from April 26 gives room for taxation of interest proceeds on commercial loans in a creditor country at a ten-percent rate, excluding interest proceeds gained by governing institutions and central banks of Russia and Armenia.
Besides, the new version of Article 25, Assistance in Levying Taxes, and Article 26, Exchange of Information, will allow exchange information about all the types of taxes and content and provide support in impose levies.
Under this agreement, taxes can be levied either in Russia or in Armenia on dividends of one country’s company that operates in the other country’s territory.
However, if the recipient enjoys the right of property on dividends and the resident of the other country has added no less than $40,000 to the company’s authorized capital, the tax must not exceed 5% of the gross sum of dividends.
The amendments imply replacement of an absolute figure with relational margin of 25-percent participation in the dividend-paying company’s authorized capital. This margin is necessary for taxation at a lowered rate.
This intergovernmental agreement and the protocol were signed in Moscow on December 28, 1996. -0-
This document dated from April 26 gives room for taxation of interest proceeds on commercial loans in a creditor country at a ten-percent rate, excluding interest proceeds gained by governing institutions and central banks of Russia and Armenia.
Besides, the new version of Article 25, Assistance in Levying Taxes, and Article 26, Exchange of Information, will allow exchange information about all the types of taxes and content and provide support in impose levies.
Under this agreement, taxes can be levied either in Russia or in Armenia on dividends of one country’s company that operates in the other country’s territory.
However, if the recipient enjoys the right of property on dividends and the resident of the other country has added no less than $40,000 to the company’s authorized capital, the tax must not exceed 5% of the gross sum of dividends.
The amendments imply replacement of an absolute figure with relational margin of 25-percent participation in the dividend-paying company’s authorized capital. This margin is necessary for taxation at a lowered rate.
This intergovernmental agreement and the protocol were signed in Moscow on December 28, 1996. -0-
