Russia scraps plans to avoid double taxation with Cyprus: ministry

MOSCOW (Reuters) – Russia’s Finance Ministry said on Monday it was scrapping a proposal to avoid double taxation with Cyprus.

The Mediterranean island has been an important destination for Russian business people because of its light regulation and taxes.

Earlier this year President Vladimir Putin said all interest and dividend payments that leave Russia should be subject to 15% tax, up from the current level of 2%, to combat capital outflows.