If the source of the income is a Russian organization, this organization is recognized as the tax agent and determines the amount of tax taking into account the following provisions.
The amount of tax subject to withholding from the income of the taxpayer recipient of the dividends is calculated by the tax agent according to the following formula:
N — is the amount of tax subject to withholding;
K — the ratio of the sum of dividends due to the taxpayer recipient of dividends to the total sum of dividends due to be distributed by the tax agent;
Sn — the appropriate tax rate set by the Russian Tax Code;
d — the total amount of dividends due to be distributed by the tax agent to all taxpayer recipients of dividends;
D — the total amount of dividends received by the tax agent in the current reporting (tax) period and the previous reporting (tax) period (with the exception of dividend income subject to a tax rate of 0%) by the date of dividend distribution to taxpayer recipients of dividends, on the condition that these dividends were not previously taken into account when determining the tax base that applies to dividend income received by the tax agent.
If N is a negative value, there is no obligation to pay tax and no refund is made from the government budget.
The particulars of paying personal income tax on income from equity participation in organizations are defined in Article 214 of the Russian Tax Code. If the source of the dividend income received by the taxpayer is a Russian organization, this organization is recognized as the tax agent and determines the amount of tax individually for each taxpayer applied to each payment of said income at a rate defined by the Tax Code, taking into consideration specifics defined in the Tax Code (Article 275 of the Russian Tax Code).
The tax rate is set at 9% of the income from equity participation in the organization received in the form of dividends by a private individual who is a tax resident of Russia (Article 224 of the Tax Code).
The tax rate is set at 15% of the dividend income from equity participation in the organization received in the form of dividends by a private individual who is not a tax resident of Russia (Article 224 of the Tax Code).
The particulars of determining the tax base for income received from equity participation in other organizations are defined by Article 275 of the Russian Tax Code. If the Russian organization who is the tax agent pays dividends to a foreign organization and/or private individual who is not a resident of Russia, the tax base of the taxpayer recipient of dividends for each such payment is determined as the sum of the paid dividends and it is subject to the rate set by the Tax Code (Articles 224 and 284).
В случае если российская организация — налоговый агент выплачивает дивиденды российской организации и (или) физическому лицу, являющемуся налоговым резидентом РФ, налоговая база определяется с учетом особенностей, установленных НК РФ (п. 2 ст. 275).
0% — on dividend income received by Russian organizations if on the date the decision was made to pay dividends the organization receiving the dividends has continuously owned for at least 365 calendar days a stake of at least 50% in the charter (
9% — on dividend income received from Russian or foreign organizations in case of noncompliance with the criteria defined by the Tax Code for taxation at the rate of 0%.
15% — on dividend income received from Russian organizations by foreign organizations
The Tax Code establishes a special procedure for calculating the amount of tax that the tax
If an international agreement of Russia that contains provisions concerning taxation and levies establishes other rules and regulations than those prescribed by the Russian Tax Code, and regulations on taxes and/or levies have been adopted in accordance with it, then the rules and regulations of the international agreement are applied (Article 7, Tax Code).
