Russia: Increase of withholding tax rates applicable to Russian resident individuals

23.12.2020

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.

-------------------------------

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.