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RUSSIAN GOVERNMENT APPROVES AMENDMENTS TO AGREEMENT WITH ARMENIA ON REMOVAL OF DOUBLE TAXATION
/ARKA/
May 3, 2011
YEREVAN
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.
From: A. Papazian
/ARKA/
May 3, 2011
YEREVAN
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.
From: A. Papazian