Russia, Luxembourg Agree to Triple Tax on Dividends, Interest

Russia and Luxembourg agreed Friday to amend their tax treaty, in a deal that will raise the withholding rate on dividends and interest to 15% next year, from 5% currently.

Russian and Luxembourg officials signed a protocol to amend the treaty in Moscow. Russia, eager to capture tax revenue it says is lost overseas, has made similar deals with Cyprus and Malta and is pushing to revise its agreement with the Netherlands.

Moscow is working “on a number of innovations aimed at de-offshorization of the Russian economy,” including making Russia’s special administrative regions “more attractive for the transfer ...