Quick refund - eligibility, documentation, deadlines - Russian debt securities

30.12.2020

Who can apply for a quick refund?

A quick refund of withholding tax on interest is available through Clearstream Banking for the following beneficial owners:

Eligible beneficial owners

Effective rate of tax
after refund

Tax refund
available

Residents of Double Taxation Treaty (DTT) countries

DTT rate

30% minus the DTT  rate

Tax exempt entities recognised by Russian law                     

0%

30%

Russian legal entities

0%a

30%

Russian individuals

15%b from 1 January 2021

15%

Non-resident legal entities

0%/15%/20%c

 30%/15%/10%

a. According to the Russian Tax Code the Tax Identification number must be provided in case a Russian legal entity is eligible for exemption.
b. 13% until 31 December 2020.
c. Non-resident legal entities disclosing their legal status and residency are eligible for a reduced tax rate of 20% at source on interest from corporate bonds and 15% on mortgage-backed bonds.
Non-resident legal entities are furthermore eligible for 15% on interest from RUB-denominated corporate bonds issued in the period from 1 January 2017 to 31 December 2021, if providing the applicable NSD Tax codes.

Documentation requirements

Quick reclaim of withholding tax is available if relief at source has not been obtained by the eligible beneficial owner.

The eligibility criteria and certification requirements are the same as the ones included in the Relief at source section.

In addition, if a One-Time Certificate with Box 1 or 2 ticked is submitted for a quick refund application, customers are obliged to send in addition a SWIFT MT599 or CreationOnline free-format message indicating the ISIN and payment date for which the standing instruction must be applied.

Deadlines for receiving documents

In order to benefit from a quick refund from Russian debt securities, 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.

When are refunds received?

The estimated time for receiving a refund is at least 25 business days after the payment date.