The Protocol on Amendment of the Double Taxation Agreement between Russia and Cyprus as well as the Double Taxation Agreement between Russia and Chile were ratified

The protocol of 7 October 2010 "On Amendment of Agreement between the Government of the Russian Federation and the Government of the Republic of Cyprus on Avoiding Double Taxation for Taxes on Income and Capital of 5 December 1998" was ratified by Federal Law No. 9-FZ of 28 February 2012.

The protocol introduces a number of amendments to the definitions of terms used in the Treaty, for example, terms "dividends" and "interests".

An important innovation is a provision according to which income received by a resident of the Contracting State as a result of alienation of shares or similar rights (if more than 50% of value of such shares or similar rights constitute real estate located in other Contracting State) may be taxable in such other Contracting State. However, these amendments will become applicable from the first of January of a calendar year falling upon expiry of four years from the effective date of the Protocol, i.e. not earlier than 1 January 2017.

Articles 26 "Exchange of Information" and 27 "Assistance in Collection Taxes" were restated (shall become effective as soon as Cyprus enacts necessary legislation).

Agreement between the Government of the Russian Federation and the Government of the Republic of Chile on Avoiding Double Taxation and Preventing Tax Evasion for Taxes on Income and Capital was also ratified.