Russia: Clarification on new withholding tax rate applicable to some corporate bonds


Further to our Taxflash T16028, dated 5 August 2016, Clearstream Banking1 would like to inform customers that further clarification has been received regarding the impacts of new Law No.242-FZ. Effective

1 January 2017

the withholding tax rate applicable to Russian corporate bonds will decrease from 20% to 15%, provided that the following conditions are met:

  • The bond must be issued by a Russian organisation;
  • The bond must be denominated in Russian Rubles (RUB);
  • The bond must be issued between 1 January 2017 and 31 December 2021 (both inclusive);
  • The bond is traded on an established securities market at the date when interest income on such bonds is recognised for tax purposes; and
  • The beneficial owner is a foreign or Russian legal entity.

Further information

For further information, please contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or your Relationship Officer.

1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Frankfurt customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.