The Company’s Regulations on the Dividend Policy approved by the Board of Directors seek to ensure the transparency of the mechanism for determining the amount of dividend and the dividend payment procedure.
Upon the Board’s recommendations, the General Meeting of Shareholders determines the dividend amount and record date, which, as per Russian laws, is to be set within 10–20 days of the General Meeting of Shareholders.
Dividends to a nominee holder are paid directly within 10 business days, while dividends to persons listed on the shareholder register are paid through the registrar within 25 business days after the record date.
Any person who has not received the declared dividend because their address or banking details were not available to the Company or the registrar as required, or due to any other delays on the part of the creditor, may request payment of unpaid dividend within three years from the date of the resolution to pay the dividend. Beyond this period, any declared but unclaimed dividends are recovered as part of the undistributed profit of the Company, and there will be no obligation to pay them.
Dividend payment dates
In 2023, the Company paid dividends subject to current regulatory restrictions:
Shareholders who are customers of foreign nominee holders and ADR holders: dividends were paid directly to security holders; the payment was made if information to identify the security holder and other information required to make the payment was available
Certain categories of foreign shareholders: dividends were paid to type “C” accounts opened with Russian credit institutions
Report on dividend paidEarlier dividend history is available at the Company website. Dividends are paid out to shareholders within three years from the respective dividend resolution date. Beyond this period, any unclaimed dividends are recovered as part of the undistributed profit of the Company, and there will be no obligation to pay them.Including RUB 32.3 billion, or USD 0.5 billion in dividend payments to ADR holders for 2021, transferred to the depository (NSD) and returned to the Company due to the restrictions imposed by the President’s Executive Order No. 95 dated 5 March 2022 and the Resolution of the Bank of Russia’s Board of Directors dated 10 June 2022
Reporting period for which dividends were paid
Total dividend paid
Declared dividend per share
USD mln
RUB mln
RUB
9М 2023
1,475
129,982
915
2022
0
0
0
2021
6,196
410,917
2,689
2020
3,532
259,893
1,645
2019
5,011
323,482
2,045
Dividends in 2023
On 7 December 2023, the Extraordinary General Meeting of Shareholders resolved to pay 9M 2023 dividend of RUB 915.33 per ordinary share, with the amount of dividend payout totalling close to RUB 130 billion (about USD 1.5 billion).
Securities taxation
Income from securities is taxable pursuant to the applicable laws of the Russian Federation.
Under international double tax treaties, non‑Russian tax residents may claim a reduced rate of withholding tax or relief from tax in RussiaExecutive Order of the Russian President No. 585 dated 8 August 2023 suspended the main provisions of double tax treaties between Russia and «unfriendly» countries.. To claim these benefits, non‑residents need to submit the following confirmations to their Russian tax agent paying the income:
A confirmation of permanent residence in a state with which the Russian Federation has a double tax treaty (tax residency certificate)
A confirmation of the actual right to receive income
A confirmation that they meet other conditions set forth in the applicable treaty
If such confirmations are not provided by the date of income payment, the tax shall be withheld at the standard rates.
Dividend tax formula for Russian residents AT = P × TR × (D1– D2), where
AT – amount of tax to be withheld P – proportion of the dividend amount payable to one recipient to the total dividend amount to be distributed TR – tax rate stipulated by the Russian Tax Code D1 – dividend amount to be distributed among all recipients D2 – dividend amount received by the organization at the time of distribution of dividends in favor of shareholders (participants), provided that previously this amount was not included in the taxable income
Taxation of income from securities (%)
Shareholder
From transactions
Interest
Dividend
INDIVIDUALS
Residents
13/15Or 0%, if by the selling date the Company shares have been held for more than five years and the requirements for the share of real estate in the Company’s assets as outlined in Clause 2, Article 284.2 of the Russian Tax Code have been met. The terms and conditions of applying the 0% rate to international holding companies are set forth in Article 284.7 of the Russian Tax Code. Pursuant to Subclause 1, Clause 1, Article 219.1 of the Russian Tax Code, individuals who are Russian tax residents are eligible for investment tax deductions in the amount of the profits from sales of the Company shares owned by the taxpayer for over three years.,Pursuant to Clause 1, Article 224 of the Russian Tax Code, a tax rate of 15% applies to income over RUB 5 million for the reporting period.
13/15Pursuant to Clause 1, Article 224 of the Russian Tax Code, a tax rate of 15% applies to income over RUB 5 million for the reporting period.
13/15Pursuant to Clause 1, Article 224 of the Russian Tax Code, a tax rate of 15% applies to income over RUB 5 million for the reporting period.
Non‑residents
30Or 0%, if by the selling date the Company shares have been held for more than five years and the requirements for the share of real estate in the Company’s assets as outlined in Clause 2, Article 284.2 of the Russian Tax Code have been met. The terms and conditions of applying the 0% rate to international holding companies are set forth in Article 284.7 of the Russian Tax Code. Pursuant to Subclause 1, Clause 1, Article 219.1 of the Russian Tax Code, individuals who are Russian tax residents are eligible for investment tax deductions in the amount of the profits from sales of the Company shares owned by the taxpayer for over three years.
30
15
LEGAL ENTITIES
Residents
20Or 0%, if by the selling date the Company shares have been held for more than five years and the requirements for the share of real estate in the Company’s assets as outlined in Clause 2, Article 284.2 of the Russian Tax Code have been met. The terms and conditions of applying the 0% rate to international holding companies are set forth in Article 284.7 of the Russian Tax Code. Pursuant to Subclause 1, Clause 1, Article 219.1 of the Russian Tax Code, individuals who are Russian tax residents are eligible for investment tax deductions in the amount of the profits from sales of the Company shares owned by the taxpayer for over three years.
20
13If the income is classified as income of a foreign entity from sources in Russia in accordance with Clause 1, Article 309 of the Russian Tax Code.
Non‑residents
20If the income is classified as income of a foreign entity from sources in Russia in accordance with Clause 1, Article 309 of the Russian Tax Code.