NSD discloses aggregated tax information to the tax agent for depositary receipts on shares of Russian issuers through the upstream storage location (foreign depository/custodian) when making dividend payments on depositary receipts for shares of Russian issuers.
In accordance with Article 214.6 and Article 310.1 of the Tax Code of the Russian Federation, the following aggregated tax information must be provided to the Russian tax agent for calculating and withholding taxes:
To obtain standard rates:
number of securities;
tax jurisdiction of the individual exercising (on whose behalf are exercised) rights to securities;
state of permanent location of the legal entity exercising (on whose behalf are exercised) rights to securities.
To obtain exemptions and benefits:
number of securities;
tax jurisdiction of the actual income recipient;
references to provisions of the Tax Code of the Russian Federation or international agreement providing for a reduced tax rate (exemption from taxation).
At the same time, as before, minimum rates from international agreements are not provided by the tax agent for income in the form of dividends, the provision of which depends on the share of participation in capital, the amount of investments in the organization's capital, or the shareholding period.
To comply with tax disclosure requirements, NSD deponents who are recipients of dividend income on depositary receipts for shares of Russian issuers may provide NSD (as an intermediate disclosing depository) with tax disclosure and documents confirming the tax jurisdiction of income recipients.
To obtain tax exemption and benefits at the source of payment, documents must be provided to NSD before the date determined by NSD in accordance with the requirements of the upstream storage location (foreign depository/custodian).
Recalculation (refund) of tax through NSD is also possible within the period determined by NSD in accordance with the requirements received from the upstream foreign depository/custodian.