Dividends on Moscow Exchange shares in 2021 - size and register closure date

Foreigners on the Moscow Exchange or “pseudo-Russian” shares

We are all accustomed to the fact that a Russian broker is a tax agent. An investor, when purchasing domestic securities, does not need to bother with taxes (in most cases). Dividends reach the investor already cleared of tax. Additionally, at the end of the year, the broker summarizes the final financial result of your account (profit from purchase and sale transactions) and, if there is free money, he will write off the required amount for you. They will also notify you in advance about this. Beauty.

But there are seemingly Russian companies on the Moscow Exchange that operate in the Russian Federation, but in fact are foreign securities. Registered not in Russia. An example of such companies: Tinkoff, Lenta, Mail, Yandex, X5 (Pyaterochka).

Most of these foreign securities are in fact depository receipts. But I will refer to everything with the word “shares”.

Educational program.

A depositary receipt is ownership of shares that are traded on a foreign exchange. In simple words, depositary receipts help you buy shares traded on foreign exchanges through their home exchange.

For example. Shares are traded on the London Stock Exchange. How to bring them to the Russian market? Or other countries. The Russian side (depository) registers (purchases) part of the shares from the London Stock Exchange for itself (receives rights to the shares) through a local custodian bank (the securities remain stored in England). And in Russia it sells these rights in the form of depositary receipts to Russian investors.

It certainly sounds so-so (like a fraudulent scheme), but in terms of reliability, the receipts are equal to the shares themselves. And there is no reason to worry. This is a common practice all over the world.

For “pseudo” Russian securities, the Russian broker does not withhold taxes on dividends. And if the foreign issuing country in which the company is registered did not withhold taxes when paying dividends, then they will need to be declared and paid independently in the Russian Federation.

The good news is that the tax on profits from purchase and sale transactions on such securities will be calculated and withheld by the broker. The investor can only “deal with the dividends.”

And many questions immediately arise? How to do it all correctly. How to understand that this is a foreign company? Do I need to file a return and pay taxes? And how many?

Algorithm of actions:

1. We determine the affiliation of the company (Russian or foreign).
2. Find out the tax rate of the issuing country.
3. If the tax rate is more than 13%, then you do not need to pay anything extra.
4. If the rate is less than 13%, you need to pay the difference in the Russian Federation.

And now in more detail with examples and useful links.

Dividends on Moscow Exchange shares in 2021 - size and register closure date

Home → Dividends→ Shares of Moscow Exchange JSC - forecast, payment history

A table with the complete history of dividends of the Moscow Exchange company, indicating the amount of payment, the date of closure of the register and the forecast:

*Note 1: The Moscow Exchange operates on the T+2 trading system. This means that settlements for buying and selling shares occur within 2 business days. Therefore, to be included in the register of shareholders and receive dividends, you must be a shareholder 2 days before the cutoff.

*Note 2: Exact payout date varies by broker and issuer. The predicted nearest date for receipt of dividends to the brokerage account for the Moscow Exchange company: May 27, 2021.

Total dividends of Moscow Exchange JSC shares by year and changes in their size compared to the previous year:

The amount of dividends paid by Moscow Exchange JSC for the entire period is 55.3 rubles.

Average amount for 3 years: 8.36 rubles, for 5 years: 8.14 rubles.

DSI indicator: 0.93.

You can buy shares of Moscow Exchange JSC with minimal commissions from stock brokers: Finam and BCS. Free deposits and withdrawals. Online registration.

Dividend policy:

In the fall of 2021, the Moscow Exchange approved a new dividend policy, according to which the company allocates at least 60% of net profit under IFRS to payments to shareholders (previously - at least 55%).

The Company will seek to distribute as dividends all free cash flow, which is equal to operating income and depreciation less operating expenses, taxes, CAPEX, changes in regulatory capital and stress tests, as well as M&A transactions.

Brief information about the issuer PJSC Moscow Exchange

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Calendar with upcoming and past dividend payments

View full calendar for 2021 »

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View the full company rating for 2021 »

Interesting read:

• How to buy shares as an individual - a detailed overview;
• How to start trading on the stock exchange;
• How to buy securities - a complete guide;
• How to create an investment portfolio for a beginner;
• How to start living on dividends;
• How to buy Gazprom shares as a private individual;
• What is the income of the shares;
• Investments in Russian shares;

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Determining company affiliation

Each security has its own unique identifier - ISIN. For Russian securities, the code always begins with RU...

For example, ISIN:

• Sberbank - RU 0009029540
• Gazprom - RU 0007661625
• Lukoila - RU 0009024277

If at the beginning of ISIN there are letters other than RU, then the company is not Russian.

For example, Lenta - ISIN US 52634T2006, QIWI - US 74735M1080.

How to find out ISIN?

On the Moscow Exchange website, use a search (by ticker or name) to find the shares you need. On the promotion page, look at “Tool Options”.

Below is an example of Lenta shares. We see the ISIN code begins with US (not Russian). Plus the paper is a depository receipt.

How to find out the country of issue?

To determine the country of the issuer, we use the website isin.ru. Using the example of Tinkoff shares (TCS GROUP).

Enter the ISIN code in the search field. We look at the column “Name of issuer; country of issue." The last word (or rather the abbreviation) is exactly the country in which the Tinkoff company is registered.

Determining the country by ISIN

CY - what kind of country is this? How to translate this into Russian?

CY is the international designation for Cyprus. Explanation of meanings can be found here or here. Or independently in search engines using the phrase “classifier of countries of the world”.

Cyprus Classifier - CY

CYPRUS is offshore. The tax rate on dividends is 0%. Consequently, you will need to pay 13% tax in the Russian Federation on dividends received from Tinkoff.

Another example is stocks (ISIN - US98387E2054).

The country of registration of the company is the Netherlands. The country's tax rate on dividends is 15%. When receiving dividends, 15% tax was withheld from investors. This means you don’t need to pay anything in Russia.

Table on taxes on dividends of shares and depositary receipts

I have prepared for you (and for myself) a cheat sheet for all foreign securities known to me from the Moscow Exchange.

We kindly ask you to report inaccuracies, innovations and changes in the comments. I will try to keep it up to date.

IMPORTANT!

Note to X5 shareholders...

The Ministry of Finance is proceeding to denounce the Double Taxation Agreement with the Netherlands. If the bill is signed and comes into force, then the tax on dividends will have to be paid twice: 15% in the Netherlands and 13% in Russia. Source.

St. Petersburg Stock Exchange

Data is as of April 26, 2021.
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