Always moving forward! New Taxation and Dividend Payment Procedure Applied to Depositary Receipt Holders

Transcription

1 Always moving forward! ew axation and Dividend Payment Procedure Applied to Depositary Receipt Holders

2 Always moving forward LEER F REPRESEA MPRA: his presentation (the Presentation ) has been prepared by LUKL s internal tax advisors to provide a summary of certain Russian tax law considerations in connection with receiving payments of dividend on the LUKL ADRs. his summary does not purport to be a legal opinion or to address all tax aspects that may be relevant to you. You are urged to consult your own tax advisor as to your particular tax consequences, including the applicability and effect of any other tax laws or tax treaties, of pending or proposed changes in the applicable tax laws as of the date hereof, and of any actual changes in applicable tax laws after such date. LUKL and its related parties, officers, directors, employees and agents do not accept responsibility or liability for this Presentation or its contents. o representation or warranty is made as to the accuracy or completeness of the Presentation or its content. he Presentation is not exhaustive and does not serve as legal, accounting or tax advice. othing herein shall be taken as constituting the giving of investment advice and this Presentation is not intended to provide, and must not be taken as, the basis of any decision and should not be considered as a recommendation by LUKL and its related parties, officers, directors, employees and agents. he recipient must make its own independent assessment and such investigations as it deems necessary. othing in this Presentation is intended to create or shall be construed as creating any fiduciary relationship between LUKL and the recipient 1

3 Always moving forward PRVSAL DVDED PAYME PLA FR DEPSARY RECEP HLDERS SARG JAUARY 01, 2014 A LUKL DVDEDS Central Depositary (P ZA ational Settlement Depositary - SD) 1. Dividend payment to SD by A LUKL to ensure cascading payments - 10 business days following the Compilation Date of the persons entitled to dividends* at the latest (i.e., July 29, 2014, inclusive). 2. Dividend payments made by SD to Depositary (A VB Bank) - the business day following the dividend reception date from A LUKL at the latest (i.e., July, 30, 2014, inclusive) DVDEDS a x e s Depositary (ОАО VB Bank) ax agent - Custodian (nominee shareholder, beneficial owner) DVDEDS BY MELL Foreign company with open depositary accounts - nominee sharholder, beneficial owner) 3. Dividend payments made by Depositary (A VB Bank) (net of income tax) to BY Mellon - the business day following the dividend reception date from Depositary (A VB Bank) at the latest (i.e., July, 31, 2014, inclusive) 4. Dividend payments made by BY Mellon (net of income tax) to Depositary receipt holders or foreign custodians business days following the dividend reception date from Depositary (A VB Bank) at the latest (i.e., August, 07, 2014, inclusive) DVDEDS RF AX AUHRES Depositary receipt holders * from now on the specific transaction dates are determined in view of the assumption that the Annual General Meeting of A LUKL Shareholders will regard July, 15, 2015, as the compilation date of the List of persons entitled to dividends (hereinafter the List). 2

4 CME AX RAES FR DVDEDS PAD AFER JAUARY 01, 2014 Always moving forward Should dividends be paid on depositary receipts, the VB Bank Depositary shall apply the following income tax rates (personal income tax and corporation tax): 1. n case the Consolidated nformation is not disclosed/improperly disclosed: 30% RAE Applied to the dividends payable to the RF tax residents and non-residents 2. n case the Consolidated nformation is properly disclosed: 9% RAE (in view of the possibility of the tax base reduction based on Art. 275 of the RF ax Code) Applied to the dividends payable to the RF tax residents* 15% RAE Applied to the dividends payable to non-rf residents** Rates under international agreements*** Applied to the dividends payable to non-rf residents* - tax residents of the states that have international agreements with the RF *RF tax resident an individual actually residing in Russia at least 183 calendar days or longer per year or a legal entity established under the Russian law ** non-rf resident an individual actually residing in Russia less than 183 calendar days per year or a legal entity established under foreign laws and located outside of Russia *** as exemplified by the agreement with the Republic of Cyprus: 10% rate (only proviso tax residency in the Republic of Cyprus), 5% rate (special proviso shareholding in the company). he right to 5 % rate is exercised by depositary receipt holders by way of applying to the RF tax authorities. 3

5 AXA PRCEDURE FR DVDEDS PAYABLE DEPSARY RECEP HLDERS VEW F HE SUBMED FRMA Always moving forward C S L D A E D F R M A within 7 business days from the List compilation date shall include: - number of A LUKL shares; BY MELL - number of the securities (depositaty receipts ) issued by BY Mellon certifying the rights to A LUKL shares; - states whose tax residents are represented by holders of BY Mellon securities (depositary receipts); - privileges and grounds for their application under international agreements applied transfer method: - as an e-document signed by means of the SWF system or with an electronic signature - on paper; Depositary (ОАО VB Bank) - Custodian between 1 and 30 business days following the dividend payment date by VB Depositary to BY Mellon R E V S E D F R M A based on the Consolidated nformation calculates and withholds taxes at the following rates: 9% - RF tax residents 15% - non-residents of RF rates under international agreements applied to non-residents based on international agreements 30% - in case of lack of Сonsolidated information upon reception of the Revised Consolidated information between 1 and 25 business days following the dividend payment date, recalculates the tax calculated at the rate of 30%, between 26 and 30 business has a right not to recalculate the tax; 30 business days following the dividend payment date at the latest transfers the taxes to the budget, finalizes the dividend payment procedure with BY Mellon 4

6 REPAYME F UDULY WHHELD CME AXES* Always moving forward Should the depositary receipt holder confirm the right to apply the rate based on the international agreement in relation to which the said agreement sets special application terms, a special repayment procedure of unduly withheld income tax shall be provided for. ndividuals and legal entities can file their applications to the tax authorities within 3 years upon expiration of the calendar year in which the dividends were paid, i. e. the 2014 dividends - until December 31, axes are repaid by the tax authorities at the registration place of the VB Depositary, i. e., by the nterregional FS nspection for the Largest ax Payers o. 9 (address: 39A, Professor Popov st., St. Petersburg, ). he requirements to the list of documents submitted to the tax authorities for tax reclamation are set in Article 312 of the RF ax Code, the contents of a particular package of documents can depend on the particular circumstances of holding the depositary receipts. he sum shall be repaid in rubles within one month following submission of the complete package of documents to the tax authorities. *his procedure shall be applied to legal entities. he tax repayment procedure applied to individuals is not thoroughly settled by now. 5

7 HAK YU FR YUR AE