What will change and when?
2 significant changes are envisaged.
Amendments to Russian Tax law were proposed by President Vladimir Putin during his TV speech on March 25.
The President of Russia proposed to tax at 13% the interest income from deposits and investments in debt securities exceed 1 mln roubles.
Finance Minister Anton Siluanov commented the new tax of 13% on interest income for citizens whose total bank deposits or investments in debt securities exceed 1 million rubles proposed by Russian President Vladimir Putin.
This measure will not affect the income received by the citizens of the Russian Federation in 2020 as it will enter into force from 2021 and will be withheld only in 2022. The tax will not cover changes in the amount of the contribution due to exchange rate fluctuations. For savings in foreign currency, the amount of interest will have to be converted at the CB rate for each day separately.
According to Siluanov a similar approach would apply to investments in debt securities. The Russian leader had explained earlier that the additional tax revenues would be used to finance measures to support families with children and those became unemployment. Assistance will also be provided to all those on sick leave...
https://politexpert.net/190179-siluanov-raskryl-sut-novogo-naloga-na-procentnyi-dohod-po-vkladam-rossiyan
Cyprus, Malta, Luxembourg – who is next?
Following the instructions of the president of Russian federation Mr. Putin to add a new tax of 13% for “dividends and interest transferred to foreign accounts”, the ministry of Finance of RF sent letters to Cyprus, Luxembourg and Malta authorities.
As per the official announcement from the press service of the ministry of Finance of Russia, some changes should be done to the current tax rates provided for in the double taxation treaties with those countries.
The existing version of tax treaties mention that at the certain conditions the domestic withholding tax rates may be reduced to 5% and in some cases may be nil.
According to the new changes for all types of income the tax will be fixed at 15%.
As per the Russian Finance Ministry the taxation of “…interest income paid on Eurobond loans, bonded loans of Russian companies and loans made by foreign banks” will be governed by Russian tax law.
http://internationaltaxtreaty.com/treaty/russia
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