AO UniCredit Bank
Summary:
Changes to the taxation of income on Russian securities paid to foreign individuals
Mon, 26/07/2021
According to the Federal Law 305-FZ, dated July 2, 2021, starting from August 2 2021, the personal income tax will not be applied by the tax agent to the gross interest amounts paid on all Russian government and municipal bonds to foreign individual investors.
The statutory tax rates will be as follows:
- 0% for individual investors – foreign tax residents
- 30% – penalty rate if the information about tax residency was not disclosed by the foreign nominee holder for the securities kept in a foreign nominee account.
Impact on investors: Clients should take note that from August 2, 2021 the Russian custodian acting as a tax agent will not apply tax on the gross amounts of coupons paid to foreign individual investors on Russian government and municipal bonds.