Malta and Russia updated tax agreement
New treaty was signed on 24 April 2013
From a Maltese perspective, any withholding tax on dividends may not exceed the tax chargeable on the profits out of which the dividends are paid, i.e. effectively no withholding tax will be levied.
It should be noted that the term “dividends” is defined to include income paid in the form of interest, which is subject to the same tax treatment as income from shares by the source state, as well as any payments on units of mutual investment funds or similar collective investment vehicles or schemes.
The rate on interest will be 5% and the rate on royalties will be 5%.
In regards of capital gains the source state may tax gains derived by a resident of the other state from the alienation of shares or other rights deriving more than 50% of their value directly or indirectly from immovable property situated in the source state.