(L-R): Ambassador Georges Faber; Russian Deputy Minister of Finance, Alexeï Sazanov;
Credit: Luxembourg embassy in Moscow
Luxembourg's Ministry of Finance has confirmed that Luxembourg and Russia have signed an addendum amending the the tax convention between the Russian Federation and the Grand Duchy of Luxembourg aimed at avoiding double taxation.
On Friday 6 November 2020, Luxembourg's Ambassador to Russia, Georges Faber, and the Russian Deputy Minister of Finance, Alexeï Sazanov, signed the addendum modifying the convention between Luxembourg and Russia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital which had originally be signed on 28 June 1993.
This addendum was negotiated following a request from the Russian Federation due to a change in its conventional policy on withholding taxes on dividends and interest. It proposes to increase the conventional withholding tax rate on dividends and interest to 15% while providing for certain exceptions to this general principle.
The amendment will enter into force as soon as Luxembourg and Russia have completed the respective legislative procedures with the objective of entering into force on 1 January 2021.
