Russia: Increase of withholding tax rates applicable to Russian resident individuals
Clearstream Banking1 informs its customers of the following tax updates received from the Russian CSD, National Settlement Depository (NSD).
Effective
1 January 2021
the withholding tax rates applicable to Russian resident individuals will increase from 13% to 15%.
Impacts on customers
As of 1 January 2021, the withholding tax rate of 15 % will be applicable to all Russian-sourced income payments paid to Russian individuals according to the below table, and the relevant amendments will be made to the list of tax rates in accordance with the Russian Tax Code.
Tax code | Type of financial instrument | Type of person | Tax residency | Tax rate under the Russian Tax code | Type of income | |
Article | Point | |||||
224 | 1 | Equities of Russian issuers | Individuals | Russian tax resident | 15% | Dividends |
224 | 1 | Federal Bonds (OFZ) Regional bonds (Sub-federal bonds, Municipal bonds) Russian corporate bonds | Individuals | Russian tax resident | 15% | Interest income |
224 | 1 | Corporate mortgage-backed bonds | Individuals | Russian tax resident | 15% | Interest income |
Further information
For further information, customers may contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or their Relationship Officer.
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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 AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.