MONDAY, 15 AUG 2022



Facebook Linked In Twitter

US Invests $280bn In High Tech To Compete With China

Greece Exits Enhanced Surveillance Programme 12 Years After Bailout



brought to you by CIPA

Russian Deoffshorisation: "Not Disastrous for Cyprus"

Russian Deoffshorisation:

Following months of speculation, Vladimir Putin, President of Russia, has ratified legislation that introduces amendments to the country’s tax code, obliging Russian owners of companies registered in offshore tax havens to pay taxes in Russia.

The deoffshorization legislation obliges Russian tax residents to declare undistributed profits of controlled foreign companies; minimum profits subject to declaration will equal 50 million roubles in 2015, 30 million roubles in 2016 and 10 million roubles after 2017.


Effect on Cyprus?

As a country with a strong strategic partnership with Russia, the news of the law’s ratification has left Cypriot businessmen wondering what effect this will have on Cyprus.

“In no way is this immediately disastrous for Cyprus,” Christodoulos Angastiniotis, Chairman of the Cyprus Investment Promotion Agency (CIPA) told Gold News this morning. 

Though the legislation will oblige certain Russian firms to alter their operations on the island, he continues, there is a grace period of between a few months to several years before any real action must be taken.

“The ultimate effect of the deoffshorization will depend on how many Russian firms decide to take the appropriate measures that will allow them to extend the grace period.”

Additionally, alternative options may be offered to investors to tackle the new terms, explains Christodoulos Damianou, Executive Director of Eurofast.

Speaking exclusively to Gold News, he agrees that “the bill will be quite tough on Russian residents and will bring about a major change in the outbound Russian tax landscape.”

“Therefore,” he notes, “in light of these significant changes, we are now called to improve our game in terms of restructuring options applicable to Russian investors.”

Offering such alternative options may, in fact, lead to further cooperation with Russian firms, as opposed to damaging business relations. 

“If we play our cards right, the good may, indeed, outweigh the bad,” Angastiniotis adds. 


Retaliation Against Sanctions?

Though commonly perceived as retaliation to Western sanctions, Russian officials have explained that the legislation is not related to political tension following the state’s involvement in the crisis in Ukraine. 

“A large part of the Russian economy is linked to offshore tax shelters in one way or another. The use of offshore havens by Russian business causes large damage to the country’s interests,” Deputy Chairman of the Federation Council Committee for Economic Policy Sergei Shatirov told international media sources today. 

The implementation of the law will yield an additional $3-4.3 billion in tax revenues for the Russian budget annually, he revealed, noting that, while capital outflow through offshore schemes is estimated at $200 billion this year alone, some $2 trillion has fled Russia in recent years through offshore schemes. 


Deoffshorization is thus an important issue in ensuring national security, the senator said.


“I must stress that this initiative is not aimed at Cyprus – it is a general principal that Putin is implementing to repatriate funds,” Angastiniotis explains. 


“Russia remains a strategic partner for Cyprus, as it has been for many years.”


Musk Sells Tesla Shares Worth $6.9 Billion, Cites Chance Of Forced Twitter Deal

Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk sold $6.9 billion worth of shares in ...

Meta Raises $10 Billion In First-Ever Bond Offering

Facebook-parent Meta Platforms Inc (META.O) said on Tuesday it had raised $10 billion in ...

U.S. Senate Approves Bill To Fight Climate Change, Cut Drug Costs In Win For Biden

The U.S. Senate on Sunday passed a sweeping $430 billion bill intended to fight climate ...



Epic Invests In Renewable Energy Sources To Battle Climate Change

Epic, as a pioneering company, is investing on green and sustainable development, aiming to the reduction of the company’s ecological footprint and ...

New Residence Permits Reach Pre-Pandemic Levels In Cyprus And The EU, According To Eurostat

New residence permits issued in the European Union, as well as in Cyprus, to non-EU citizens in 2021 reached pre-pandemic levels, according to data on first ...

US Invests $280bn In High Tech To Compete With China

US President Joe Biden has signed a law committing $280bn (£232bn) to high tech manufacturing and scientific research amid fears the country is losing ...

Property Values In Cyprus Continue Upward Trend In Q2 2022

KPMG in Cyprus announces that the “RICS Cyprus Property Price Index with KPMG in Cyprus” has been issued for Q2 2022.

Greece Exits Enhanced Surveillance Programme 12 Years After Bailout

Greece will be "turning a page in its modern history" as the European Commission confirmed on Wednesday that the country will exit its enhanced ...

PASCAL Schools Join Leading Education Group Globeducate

PASCAL Schools have joined Globeducate, one of the world´s leading K12 education providers, with 55+ premium bilingual and international schools, and online ...

Eurostat: Young Air Transport Workers Most Affected By Pandemic's Impact On Sector

The decline in passengers in air transport as a result of the COVID-19 pandemic had a pronounced effect on younger workers due to staff reductions by airlines ...

Cyprus One Of Few Countries That Implemented Central State Aid And De Minimis Registry

Commissioner for State Aid Control Stella Michaelidou has welcomed the fact that her Office has taken the lead at European level and has been an example for ...