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Cyprus and Malta have joined the list of offshore zones undesirable for Russian companies

Cyprus and Malta were included in the list of countries that are undesirable for the registration of Russian companies, whose income is located in Russia. Vedomosti writes about this.

Russia - Putin

The list also includes Ireland, the Portuguese island of Madeira, Switzerland, Hong Kong, Singapore, Montenegro, Sri Lanka, Lebanon, Curacao and Tonga. In addition to these countries, the list includes two US states: Wyoming and Delaware, as well as the US Virgin Islands.

The list of countries did not include those with whom Russia had previously revised the terms of tax agreements, for example, with Luxembourg and the Netherlands.

The new list can be used when making decisions on the provision of state support. Companies whose shares are a quarter or more owned by residents of the list members may be refused assistance. The new measure will take effect from 2023.

In June 2020, it was reported that Moscow plans to break the current Double Taxation Avoidance Agreement (DTT) with Cyprus. So, the reason for this decision was that the Cypriot authorities did not show the Russian authorities their proposals to change the rates.

Cyprus and Malta have joined the list of offshore zones undesirable for Russian companies