With regard to the clarifications by the Ministry of Finance dated August 22, 2024, No. NSD-VKh-2024-39512 on certain provisions of the Tax Code of the Russian Federation, explaining the concept of applying the actual right to income (ARLI), NSD informs the following.
To retain the tax exemptions provided for in paragraph 17 of Article 226.1 and subparagraph 7 of paragraph 2 of Article 310 of the Tax Code of the Russian Federation, holders of government and municipal bonds, as well as Eurobonds of the Russian Federation, who are individuals and legal entities – non-residents of the Russian Federation, must submit declaration forms to NSD to confirm whether the payment recipient has the actual right to income (hereinafter – ARLI).
In case of failure to submit the declaration form confirming the existence/absence of ARLI, tax will be withheld at a rate of 15%.
Declaration forms for confirming the actual right to income (ARLI) and declining confirmation (DARLI) are published on the NSD website via this link.
The forms must be submitted to NSD on paper in their original form.
During the form approval process, scanned copies may be accepted.
Please note: the signatory of the forms must be an individual bondholder, or an individual authorized to act on behalf of a legal entity without a power of attorney, or an individual authorized under a power of attorney to acquire rights, as well as to acquire rights and assume obligations on behalf of an individual/legal entity (without restrictions or exceptions).
The form for individuals who are non-residents of the Russian Federation is titled: “Letter Confirming the Existence of Actual Right to Income”;
The form for foreign organizations is titled: “Letter Confirming the Existence of Actual Right to Income in a Foreign Organization and the Absence of Right to Such Income for Individuals Who Are Russian Tax Residents”.
Following the approval process by official authorities for the new editions of the Lists of documents submitted by holders to NSD for receiving payments, the full versions of the Lists, including these requirements, will be published on the NSD website.