News. Tax Management for Russian Securities

23 January 2020
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Attn.: NSD's Clients

Due to the amendments made by Federal Law No. 514-FZ dated 27 December 2018 to Federal Law No. 39-FZ dated 22 April 1996 "On the Securities Market", please be advised that the new versions of the following regulations of National Settlement Depository (NSD) will take effect:

  • Regulations on the Procedure for Performance of Withholding Agent Functions under the Russian Tax Code (Appendix 4 to the Guidelines on the Procedure for Interaction between the Depository and Clients in the Course of Performance under the Terms and Conditions of Depository Operations of National Settlement Depository) (the "Regulations"); and
  • Rules for Tax Procedures under the Russian Tax Code (the "Rules").

The amendments made to the Regulations and the Rules are as follows:

  1. The name of Web-client that may be used by clients (their account operators) to submit summary tax disclosures to NSD (clause 7.1 of the Regulations) has been changed.
  2. The category of securities with respect to which the Depository acts as withholding agent under the Russian Tax Code (clauses 10, 11, and 13.2 of the Regulations) has been changed: the term "securities subject to mandatory centralized safekeeping" has been replaced by the term "securities subject to mandatory centralized safekeeping / centralized recordkeeping of rights".
  3. The time limits within which income on securities must be paid out to Clients (clause 13.1 of the Regulations, and clauses 4 and 6 of the Rules) have been revised; however, there will be no changes in actual time when such income is paid out to Clients.
  4. The requirements have been revised as to how to complete fields in a tax disclosure of international organizations and Russian organizations for corporate bonds, in particular with respect to the need to provide taxpayer identification numbers (INN/TIN) (section 2 of clause 8 of the Rules).

The Regulations and the Rules are available in the 'Tax Management' section of NSD's web site.


In case of any question related to this communication, you may contact your account managers by telephone (+7 495 956-27-90/91).

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