An agreement to modify the existing tax treaty between both countries was signed on Friday 6 November, the finance ministry said in a statement. It came as Russia signed similar amendments with Cyprus and Malta.

President Vladimir Putin in March had called for the tax hike on profits Russian companies transfer to parent company accounts in lower-taxed offshore jurisdictions. Russia is also targeting the Netherlands, Switzerland and Hong Kong in its drive to tax capital outflows.

Putin followed up the plans to tax corporations with proposals to raise income tax on high earners as of next year as part of measures to stem the impact of the coronavirus on the country’s economy.

Both announcements came before a constitutional reform referendum backed by 78% of voters that allows Putin to remain in power until 2036.

Some exemptions to the 15% tax on interest and dividend payments would apply, the finance ministry said without specifying under which conditions these exceptions would apply.

The new rules are set to come into effect January 2021.