For shareholders being legal persons
Information for shareholders being legal persons.
We bring to the notice of organizations — shareholders of «Surgutneftegas» PJSC — that in compliance with Clause 7, Article 275 of the Tax Code of the Russian Federation, the following entities shall act as tax agents to the Issuer’s shares:
1) a depositary — when paying dividend income to an organization on the Issuer’s shares the rights on which are registered in such depositary as of the date determined by a resolution to pay dividends on securities;
2) a trustee — when paying dividend income to an organization on the Issuer’s shares the rights on which are registered in a personal account or a depositary account of the trustee as of the date determined by a resolution to pay dividends on securities, in case this trustee is a professional participant of the securities market as of the date of the purchase of shares mentioned in this subclause;
3) an issuer — when paying dividend income to an organization on the Issuer’s shares the rights on which are registered in the share register of a Russian organization as of the date determined by a resolution to pay (to declare) dividends on such securities on the following accounts:
- personal account of the holder;
- a deposit account, for organization having the right to receive securities from the specified account;
- an account of unidentified persons, for organization which is confirmed to be entitled to receive such income;
- a personal account of the trustee, in case when this trustee is not a professional participant of the securities market.
- personal account of a foreign nominee holder, personal account of a foreign authorized holder, personal account of the depository programs, personal account of a foreign registrar opened in accordance with Federal Law No. 290-FZ «On International Companies» dated 03.08.2018
4) the issuer – whose dividend income on the shares is paid by the depository to the extent provided by Clause 1.6, Article 312 of the Tax Code of the Russian Federation.
To the attention of shareholders:
«Surgutneftegas» PJSC shall verify the documents and apply the reduced tax rate when paying dividends (in case there is the respective ground for this) only to the shareholders whose rights on securities are registered in the share register of «Surgutneftegas» PJSC in the accounts stated in Subclause 1, Clause 7, Article 275 of the Tax Code of the Russian Federation.
Foreign organizations who receive dividends taxed in the Russian Federation in accordance with the international double taxation treaties shall submit:
- evidence (tax certificate, tax voucher) of the permanent residence of a foreign legal person in a state being a party to the international tax treaty concluded with the Russian Federation.
- documents confirming the state registration and the full name of an organization that executes rights on the Issuer’s securities as of the date determined by the Issuer’s resolution to pay dividends.
1) the tax certificate/tax voucher is to be certified by competent authorities of that foreign state that is determined in the relative international double taxation treaty;
2) the tax certificate/tax voucher shall specify the calendar year in relation to which the evidence of permanent residence is given, and which coincides with the year of dividend payout with reference to the international double taxation treaty;
3) the tax certificate/tax voucher shall bear the date of the year of dividend payout;
4) the tax certificate/tax voucher shall be duly legalized by a consular office or a diplomatic mission of the Russian Federation in a foreign state or apostilled by the competent authority of a foreign state in accordance with the Hague Convention of October 05, 1961;
5) all documents shall be submitted in the original or in copies certified by a notary in the Russian Federation and shall be translated into the Russian language. The submitted copies shall be legible, readable, bound and numbered. Sheets shall be numbered consecutively commencing with number one in Arabic numerals. All documents sheets shall be bound with a strong thread so that its ends shall be on the reverse side of the last sheet and shall be tied together. There shall be a paper sticker with certification endorsement in place of binding on the reverse side of the last sheet.
The certification endorsement shall include the position of the person who has authenticated the document, his/her personal signature, surname and initials, number of sheets (in Arabic numerals and in words) and date. The certification signature shall overlap the paper sticker.
A translated document shall be notarized in the Russian Federation or the translation shall be done by a translator whose signature shall also be authenticated by a notary in the Russian Federation.
It should be taken into account that the Issuer does not have a right to apply minimum of tax rates under international tax treaties on double taxation. A foreign shareholder may receive a minimal tax rate only by personal appeal to the taxation body of the Russian Federation.
The refund of the withheld tax amount to the taxpayer — a foreign organization — is accomplished as stipulated by Clause 2, Article 312 of the Tax Code of the Russian Federation when a foreign shareholder makes a written application for the Interregional Inspectorate of the Federal Tax Service of Russia for Major Taxpayers No. 2.
Dividend payment with the application of benefits and preferences provided in accordance with international treaties of the Russian Federation.
In case «Surgutneftegas» PJSC being a tax agent of a foreign organization pays dividends taxed in the Russian Federation at reduced rates in accordance with the international treaties, the amount of tax on the dividend income shall be accrued and withheld by «Surgutneftegas» PJSC at reduced rates provided that the foreign organization submits to «Surgutneftegas» PJSC evidence of its entitlement to receive such income.
If the dividend income tax rate fixed by an international treaty is more than or equal to the tax rate fixed by the Tax Code of the Russian Federation for such income, the evidence of entitlement of the foreign organization to receive such income is not needed.
The following documents (information) can be particularly submitted as the documented evidence of entitlement of a foreign organization to receive the dividend income:
- letters of assurance evidencing that the recipient of the dividend income does not have any contractual or other legal liabilities to the third parties;
- documents (information) on absence of its rights limitations to use the received income and the eligibility of the recipient of income to use and manage such income at its own discretion;
- document of compliance with the requirements to ultimate dividend income beneficiaries in accordance with the double taxation treaty;
- documents evidencing that the organization receiving the dividend income conducts actual business and (or) documents evidencing that the organization receiving the dividend income possesses property and other business assets;
- articles of association of the organization receiving the dividend income which implies that the director (or any other chief executive officer) of such organization has the right to manage its income at his own discretion. The articles of association shall stipulate the possibility of the chief executive officer to freely manage shares on which dividends are paid;
- documents evidencing that there is no savings in tax when transmitting the received funds to the third parties;
- documents disproving predetermined transmission of the dividend income by the recipient to the third parties;
- financial statements prepared in accordance with IFRS and certified by an audit company.
The aforesaid set of documents is not limiting. Other documents evidencing that a foreign organization is entitled to receive dividend income and manage it on its own discretion may be submitted to «Surgutneftegas» PJSC.
Documents evidencing the entitlement to receive income and to apply reduced tax rate for dividend payment shall be received by OJSC «Surgutneftegas» prior to the dividend payout date. Documents shall be submitted within a reasonable period of time sufficient for their verification.
If at the moment of dividend income payment by «Surgutneftegas» PJSC to a foreign organization there is a doubt in relevance of previously submitted documents (information), «Surgutneftegas» PJSC may request such documents (information) again.
Unless the aforementioned documents are submitted, general tax rate fixed by the Tax Code of the Russian Federation shall be applied to dividends paid to foreign shareholders by a Russian organization.