Russia: Potential tax exemption on coupon payments
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Clearstream Banking customers are advised of a draft law, proposed by the Ministry of Finance of the Russian Federation (MinFin), introducing amendments to Chapter 23 of the Tax code of Russia. This follows information from our local depository.
One of the amendments proposed by this draft law is the exemption from tax on income paid by Russian corporate bonds to individuals, both resident and non-resident.
To obtain this exemption, the amount of the income should not exceed the amount of the coupon calculated on the basis of the key interest rate of the Central Bank of Russia (the CBR) increased by 5%. Any excess amount above this threshold would be subject to a tax rate of 35%.
To become a Law, this draft law shall be introduced to the State Duma and approved by both the State Duma and the Federation Council and thereafter signed by the President. If it passes all the governmental validations before December 2016, the changes would enter into force on 1 January 2017.
We continue to closely monitor the situation and will provide further information as it becomes available.
| 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. |