Shareholders receive dividends net of personal income tax charged and paid to the federal budget.

According to the Russian tax laws, taxing dividend income paid out by PJSC/JSC is mandatory as personal income tax. There are no exceptions to these laws.

The rate of personal income tax depends on the tax residency of shareholders**.

There are two rates for shareholders residing in the Russian Federation: if the annual income of an individual is not more than RUB 5 m, the rate stands at 13%; if it exceeds RUB 5 m, the rate is 15%.

For foreign residents, the basic rate of personal income tax is 15%. The rate may be reduced under a double tax treaty.

Personal income tax is charged and paid by a tax agent. If the rights to shares are recorded in the register of the Company’s securities / shareholders, the Company itself acts as a tax agent. Otherwise, this role may be assumed by a trustee, a broker, or a depository.

If dividends are paid more than once a year, personal income tax is calculated on a cumulative basis offsetting the amount paid earlier.

* Dividends are the Company’s net profit that can be distributed to shareholders according to their shareholding and type of shares.

** For more information about tax residencies, go to Russia's Federal Tax Service website at https://www.nalog.gov.ru/eng/