Publication of a letter of the Ministry of Finance of the Russian Federation dated 01.12.2014 № 03-08-13/61294

19 December 2014
Print version

Attn.: NSD’s Clients

NSD hereby informs its clients that:

  1. A new letter issued by the Russian Ministry of Finance addressed to the Federal Tax Service of Russia (Letter No. 03-08-13/61294 dated 1 December 2014, issued further to Ministry of Finance’s Letter 03-08-РЗ/27274 dated 5 June 2014) has been posted in the ‘NSD Acting as a Withholding Agent’ section. According to the said Letter:
    • Documents certifying the tax residency of taxpayers disclosed in summary information are only to be provided at the time of a tax audit; and
    • Documents certifying the tax residency of taxpayers disclosed in summary information are required not only where the withholding agent applies any preferential tax rates under double taxation treaties for Russian non-residents, but also where the withholding agent applies tax exemptions under the Russian Tax Code (including for Russian tax residents). Therefore, a depository acting as a withholding agent may apply tax exemptions to Russian tax residents (e.g., Vnesheconombank and Russian unit investment funds) on the basis of summary information, provided that the relevant taxpayers hold necessary documents as at the income payment date, and the withholding agent holds such documents at the time of a tax audit.
  2. To comply with the provisions of Ministry of Finance’s Letter No. 03-08-13/61294 dated 1 December 2014, the Reference List of General Tax Rates under the Russian Tax Code, as posted in the ‘NSD Acting as a Withholding Agent’ section, has been replaced. The Reference List may be used by NSD’s clients to prepare summarized Tax Disclosures both in hard copy and in electronic format.
  3. Please note that the new Reference List of General Tax Rates under the Russian Tax Code contains:
    • A reference to article 275 (clause 9) of the Russian Tax Code and a reference to article 10 of Federal Law No. 156-FZ dated 29 November 2011, for tax disclosures by Russian resident unit investment funds established under Federal Law No. 156-FZ dated 29 November 2001 without a separate legal personality, which are exempt from the withholding tax in the Russian Federation. Pursuant to the said referenced provisions, NSD, when paying out income on securities, neither calculates, nor withholds tax on the basis of a summarized tax disclosure statement, where such securities form part of a unit investment fund’s assets.

      References for unit investment funds:

      275 9   Акции российских эмитентов /Equities of Russian issuers Юридическое / Legal Entities Резидент/ Russian Resident 0 Дивиденды /dividends
      156 10   Облигации/Russian corporate bonds Облигации с ипотечным покрытием /Corporate mortgage-backed bonds Юридическое / Legal Entities Резидент/ Russian Resident 0 Процентный доход/ interest income
    • A reference to article 251 (clause 1, sub-clause 34) of the Russian Tax Code for tax disclosures by Vnesheconombank, a Russian resident exempt from the withholding tax. Pursuant to the said referenced provision, NSD, when paying out income on securities owned by Vnesheconombank, neither calculates, nor withholds tax on the basis of a summarized tax disclosure statement.

      References for Vnesheconombank:

      251 1 34 Акции российских эмитентов /Equities of Russian issuers Облигации/Russian corporate bonds Облигации с ипотечным покрытием /Corporate mortgage-backed bonds Юридическое / Legal Entities  Резидент/ Russian Resident 0 Дивиденды /dividends Процентный доход/ interest income

Should you have any question related to this message, please do not hesitate to contact your account manager at (495) 956-27-90 or (495) 956-27-91.
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