Information about rates used for the taxation of dividends

Dear Shareholders of IDGC of Centre!

In accordance with Art. 224, Art. 284 Part 2 of the Tax Code of the Russian Federation, the following taxes are deducted from the amount of dividends paid by the issuer:

Corporate profits tax Tax on income of physical persons Art. 224, Art. 284 Part 2 of the Tax Code
Legal entities - resident of the Russian Federation, on the day the decision is taken to pay dividends for at least 365 calendar days of continuous possession of the right of ownership of at least 50% authorized capital of the Company Legal entities - residents of the Russian Federation Legal entities - non-residents of the Russian Federation Physical persons – residents of the Russian Federation Physical persons – non-residents of the Russian Federation

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0% 13% 15%* 13% 15%  

*Except for the application of preferential tax rates

On 01.01.2014 the changes in the Tax Code came into effect, according to which the functions of tax agents to pay income in the form of dividends on shares can be performed by the issuer of the shares, a trustee or a depositary (see para. 7, Art. 275 of the Tax Code of the Russian Federation).

If you have a right to preferential taxation of dividends on shares of IDGC of Centre, please provide the information to the Company in accordance with the following list below:

I. For Mutual Funds

  • A notorized copy of the license of the management company for the implementation of the management of mutual funds;
  • a certified copy of the Rules of the Fund;
  • a certified Official Document about the value of the assets;
  • a certified Report on the owners of the shares of the incorporated investment fund and investment units of the mutual investment fund;
  • the original document confirming the existence of shares of IDGC of Centre as part of the mutual fund assets as of the record date of persons entitled to receive dividends (depot account statement).

II. For foreign legal entities

  • Documentary evidence that the foreign company has a permanent residence (for tax purposes) in a country with which the Russian Federation has an international treaty (agreement), which regulates the issues of taxation.
    The above evidence must be certified by a competent (in the sense of the agreement) body of a foreign state and dated 2015. These documents must have an apostille. In case the above proof is made in a foreign language a notarized translation into Russian is also to be provided. These documents may be provided as notarized copies.
  • In relation to foreign companies — tax residents of the Republic of Cyprus:
Rate applied List of documents Agreement between the Government of the Republic of Cyprus and the Government of the Russian Federation for the avoidance of double taxation with the respect to taxes on income and on capital
10% • Documentary evidence that the foreign company has a permanent residence in the Republic of Cyprus, corresponding to the above mentioned conditions

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5% • Copies of agreements for the purchase of shares of IDGC of Centre, dated no later than the record date of persons entitled to receive dividends, for the amount equivalent to at least 100,000 U.S. dollars;
• copies of documents confirming payment per the agreements;
• the original extracts from the registrar of shares available under the agreements presented as of the record date of persons entitled to receive dividends.

If these documents are in a foreign language a notarized translation into Russian is also to be provided.

III. For non-state pension funds (NPF)

    The payment of dividends on shares that belong to non-state pension fund (hereinafter referred to as NPF), carrying out activities for mandatory pension insurance as an insurer, and were acquired by them while investing pension savings to finance the funded part of the pension, IDGC of Centre does not calculate, deduct and transfer income tax to the budget provided that the following documents are submitted:

    • A certified copy of the trust agreement entered into between the NPF and the management company;
    • The original document certifying that at the record date the NPF was the owner of a certain number of shares of IDGC of Centre (DEPOT account statement as of the record date of persons entitled to receive dividends);
    • A certified copy of the agreement on the provision of specialized depositary services concluded between the management company of the NPF and a specialized depository;
    • A copy of the license to provide pension coverage and pension insurance.

If IDGC of Centre, PJSC does not act as fiscal agent for the dividends paid to you, we recommend to specify the list of documents required for preferential tax treatment of dividends with the person who performs these functions.

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