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|
*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
II. For foreign legal entities
|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|
|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:
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.