Russia: Amendment to the Tax Code of the Russian Federation by the Federal Law 102-FZ


Note: This announcement, originally published on 9 December 2020 and updated on 15 January 2021, has been further updated to provide additional details on the Breakdown of Holdings and deadlines. Changes have been highlighted.

Further to the Tax Flash T20014 of 10 September 2020 and the additional confirmation from the National Settlement Depository (NSD), in turn based on the clarification of the Russian Ministry of Finance, Clearstream Banking1 informs customers that effective

1 January 2021

the Amendment to the Tax Code (the “Code”) of the Russian Federation by the Federal Law 102-FZ will come into force, with consequences on the taxation of Federal Loan Bonds (OFZ bonds), regional or municipal bonds paid to a non-Russian organization acting on behalf of third parties as outlined below.


In accordance with the amendments made by Federal Law No. 102-FZ to the Code, with effect from 1 January 2021, paragraph 25 of Article 217 of the Code will no longer be applicable, and the income payments on Federal Loan Bonds (OFZ bonds), regional or municipal bonds will be subject to tax when paid to a non-Russian organization acting on behalf of third parties. The tax amount will be calculated and withheld by the securities depository acting as withholding agent (NSD) depending on the aggregate information disclosed per type of investors (individual or non-individual) and per jurisdiction, following the Articles 310.1 and 214.6 of the Code.

Clearstream Banking, acting as a foreign nominee holder, must disclose information required by Articles 214.6 and 310.1 of the Code regarding the investors, for both individuals and non-individuals, similar to the tax disclosures made when income is paid on corporate bonds.

Impact on customers

As from 1 January 2021, when an income payment is received on the above type of securities, customers will have to submit a disclosure detailing, for both individual and non-individual beneficial owners, the jurisdiction of the beneficial owner, a reference to the provisions of the Russian Tax Code or the relevant double taxation treaty signed with the Russian Federation which provide for the reduced tax rate (or tax exemption), as well as the quantity of securities.

The same procedure and deadlines will apply as the ones currently in place for corporate bonds and mortgage-backed bonds income payments. In case no tax disclosure is provided within the requested deadlines, this will result in the application of the 30% withholding tax from the NSD.

Eligible beneficial owners for Relief at source and Quick Refund

Eligible beneficial owners

Rate applicable at source

Residents of Double Taxation Treaty (DTT) countries

DTT rate

Tax exempt entities recognised by Russian law


Russian legal entities with TIN provided/without TIN provided


Russian individuals


Non-resident legal entities with the dedicated article from Tax Code


Documentation requirements

All customers holding Russian Federal Loan Bonds (OFZ bonds), regional or municipal bonds or corporate bonds, mortgage-backed bonds and applying for a reduced tax rate must submit:

The One-Time Certificate for Russian Debt Securities is the same currently in use for corporate bonds and mortgage-backed bonds procedure.

If such a certificate has already been provided, this document remains valid; it is however the responsibility of the customer to provide a new certificate if the statement from this document does not apply anymore.

In case the Box 3 was ticked in the One-Time Certificate, a Breakdown of Holdings must be provided before each impacted income event, via SWIFT MT599 or Xact Web Portal or CreationOnline free-format message, indicating:

  • ISIN;
  • Record Date;
  • Customer’s CBL account number;
  • Customer’s total holding on RD;
  • Country of residence of the eligible beneficial owner;
  • DTT / Russian Tax Code Articles; Paragraph, Subparagraph (see external links below);
  • Legal Status (individual/legal entity) of the eligible beneficial owner;
  • Tax Identification Number (requested for Russian legal entities only)
  • Tax rate to apply;
  • Instructed holding at reduced rate;
  • The total holding that remains undisclosed or not eligible to obtain reduced tax rate.

Deadlines for receipt of documents

Documentation for relief at source of withholding tax on interest from Russian Federal Loan Bonds (OFZ bonds), regional or municipal bonds, corporate bonds and mortgage-backed bonds must be received by Clearstream Banking by the deadlines prescribed in the per payment tax notification.

Quick Refund

A quick refund of withholding tax on interest is available through Clearstream Banking, and the same documentation and eligibility criteria for beneficial owners apply.

In order to benefit from a quick refund, customers must ensure that the above-described documents are received by Clearstream Banking at the latest 22 business days after the payment date, by 10:00 CET.

Standard Refund

No standard refund is currently available via Clearstream Banking for Russian debt securities.

Further information

For further information, customers may contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or their 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 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.