Kazanorgsintez distributes dividends* to shareholders net of personal income tax calculated and paid to the budget of the Russian Federation.
The personal income tax rate depends on the tax residency of shareholders. Residents of the Russian Federation are subject to two tax rates:
The base rate of personal income tax for residents of foreign countries stands at 15%. The rate may be reduced under a double taxation treaty.
*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, see the website of the Russian Federal Tax Service.
There are no exceptions: according to the Russian tax laws, taxing dividend income paid out by PJSC/JSC is mandatory as personal income tax.
Personal income tax is calculated 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.