General information - types of securities, deadlines, other market specifics - Russia

02.02.2021

Types of securities eligible in Clearstream Banking

The eligible securities issued in Russia are as follows:

  • Government bonds (OFZ)
  • Corporate bonds (issued after 1 January 2012)
  • Municipal bonds (regional government debt securities considered as tax-exempt) issued after 1 January 2012
  • Equities1

Types of beneficial owner

The types of eligible beneficial owner recognised for tax purposes in Russia are as follows:

  • Residents of Russia
  • Residents of Double Taxation Treaty (DTT) countries
  • Non-resident legal entities
  • Supranational organisations recognised as such by Russian law

Disclosure requirements

Debt securities

The information required by the tax agent required with respect to holdings in taxable Russian securities1 must be presented to the Russian custodian, in all details, in the correct format and on a voluntary basis, before payment date and that failure to do so will result in income entitlements under Russian securities being subject to a tax rate of 30%.

The authorised Russian bodies (the Russian Tax Authorities, the issuer, the securities market regulator etc.) are entitled by Russian law to request, after the payment of income, disclosure of the name, holdings and other data linked to the final beneficial owner of the securities (ad-hoc tax disclosure).

Equities

Despite the abolition of the “undisclosed rate” of 30% on 1 January 2015, the disclosure requirements stated by the Russian securities markets legislation are still in force (as such requirements have not been abolished). Consequently, the aggregate disclosure of the positions to be taxed at 15% statutory tax rate continue to be requested by some market participants. As a result, customers are strongly encouraged to continue disclosing positions taxed at 15% for final beneficial owners that either are not residents in a DTT country, or are not eligible to obtain a DTT rate.

It is the responsibility of the Clearstream Banking customer to comply with all legal and regulatory requirements imposed by Russian tax law in respect to missing or incorrect information related to final beneficial owners. Neither Clearstream Banking nor its local depository has any direct or indirect liabilities towards the Russian Tax Authorities in this regard.

Deadlines for relief of withholding tax

Relief at source

In order to benefit from tax relief at source on Russian securities, customers must ensure that the accurate documentation is submitted by the following deadlines:

 Debt securities

Deadline

One-time certificate for bonds

At the latest on the Record Date, by 16:00 CET.

Breakdown of holdings

At the latest on the Record Date by 16:00 CET

 Equities

Deadline

One-time certificate for equities

At the latest one business day after Record Date, by 10:00 CET.

Breakdown of holdings

at the latest one business day after Record Date, by 10:00 CET.

Quick refund

In order to apply for a quick refund of tax withheld at source on Russian securities, customers must ensure that the accurate documentation is submitted by the following deadlines:

 Debt securities

Deadline

One-time certificate for bonds

At the latest 22 business days after the payment date, by 10:00 CET.

Breakdown of holdings

At the latest 22 business days after the payment date, by 10:00 CET.

 Equities

Deadline

One-time certificate for equities

At the latest 23 business days after the payment date, by 10:00 CET.

Breakdown of holdings

At the latest 23 business days after the payment date, by 10:00 CET.

Standard refund

No standard refund is currently offered by Clearstream Banking for Russian securities.

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1. This tax guide does not cover Depository Receipts with Russian underlying securities.