Russia: Amendments to the Tax Code on personal income tax (PIT) benefits

10.09.2020

Clearstream Banking informs customers that the Tax Code of Russia has been amended by the Federal Law 102-FZ. 

With effect from 1 January 2021, coupon income on Federal Loan Bonds (OFZ bonds), regional or municipal bonds, as well as Russian corporate bonds traded in the organised market, denominated in Russian rubles and issued on or after 1 January 2017, will be subject to personal income tax at the following rates:

  • 13% for Russian tax residents;
  • 30% for non-Russian tax residents.

When a double taxation treaties (DTT) between Russia and the relevant foreign jurisdiction is in place, the foreign final investors will pay the personal income tax at the rates provided in those DTTs.

The National Settlement Depository (NSD) is currently in discussion with the Ministry of Finance of Russia, in order to determine the disclosure requirements that will be applicable for foreign nominee holders.

Further information

We continue to monitor the Russian market for new developments and will provide more information as it becomes available.

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

This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice.