Russia: New withholding tax rate applicable to some corporate bonds
Clearstream Banking customers are advised that the Government of the Russian Federation has adopted Law No.242-FZ, whose impacts are currently been analysed by our custodian. It is foreseen that the 20% withholding tax rate applicable to corporate bonds could be reduced to 15%, provided that the following conditions are met:
- The bond is issued between 1 January 2017 and 31 December 2021;
- The bond is traded on a stock exchange;
- The beneficial owner is a legal entity (should it be foreign or Russian).
We continue to monitor the impacts of this new Law and the situation in the Russian market and will provide further information as soon as all the details are clarified and confirmed by our depository.
| 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. |