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Taxation of dividends

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
A legal entity - a 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 in accordance with international treaties on taxation in accordance with Art. 312 of the Tax Code of the Russian Federation.

**With the exception of income exceeding 5 million rubles, in respect of which a progressive tax rate of 15% is applied in accordance with para. 1 of Art. 224 of the Tax Code of the Russian Federation.

According to para. 7, Art. 275 of the Tax Code of the Russian Federation, 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.

In order to exercise the right to preferential taxation of dividends, it is necessary to provide the person acting as a tax agent in the payment of income in the form of dividends with the documents required for preferential taxation of dividends. The list and procedure for drawing up such documents must first be clarified with a tax agent. It should also be borne in mind that the tax base for income in the form of dividends is determined taking into account the specifics established by para. 5, Art. 275 and para. 3.1 of Art. 214 of the Tax Code of the Russian Federation.

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