Russia: Tax exemption for Russian legal entities holding corporate bonds or mortgage-backed bonds
Based on the provisions of the Russian Ministry of Finance’s Letter, number 03-08-05/3944, dated 2 February 2015 (“the Letter”), and effective
2 February 2015
Russian legal entities disclosing their status and residency are tax exempt on interest from corporate bonds and mortgage-backed bonds processed via Clearstream Banking1.
The Letter clarifies that if a securities depository acting as a withholding agent receives summarised information from a foreign nominee, according to which the actual recipient of income on bonds is a Russian organisation, the securities depository shall not withhold tax. Russian organisations are, therefore, solely responsible for calculating and paying corporate income tax in accordance with Chapter 25 of the Russian Tax Code.
The letter, as well as the general tax rates under the Russian Tax Code, are available on the Russian CSD website.
Further Information
For further information, customers may contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.