The Tax Base on Transactions with Securities

Operations on the account dealing are not liable for VAT according to the Tax Code of the Russian Federation.

The taxpayer's incomes from transactions involved in the sale or in some other form of the withdrawal of securities (redemption included) shall be defined proceeding from the sale price or of the other form of withdrawal of a security, as well as from the sum of the accumulated (coupon) income, paid by the purchaser to the taxpayer, and from the sum of the interest (coupon) income paid out to the taxpayer by the issuer (by the bill giver). In this case, into the taxpayer's income from the sale or from another form of the withdrawal of securities shall not be included the sums of interest (coupon) income earlier recorded in the taxation.

Taxation of the income derived from the selling of securities occurs when:

• The income from the sale of securities except the state bonds is recorded as taxable income and paid out by a taxpayer;
• Selling the interest (coupon) state bonds the difference between the accumulated interest (coupon) income paid out by the purchaser within the price, and the accumulated interest (coupon) income paid out to a seller;
• Zero per cent on securities emitted before January 21, 1997 and it is not included in the taxable income;
• 15 per cent on securities emitted after the January 21, 1997 and it is not included in the taxable income.

The amount of remained income realized by selling securities is recorded in taxation and levied with profit tax according to the standard procedure.

Selling the state discount securities the amount of received income is levied with tax at a tax rate:

• zero per cent on securities emitted before the January 21, 1997 and it is not recorded in the taxable income;
• 15 per cent on securities emitted after the January 21. 1997 and it is not included in the taxable income.

Profit on securities derived in the form of dividends and interest is levied with tax according to the following procedure:

• dividends on shares are levied with profit tax at a tax rate of 9 per cent and are not included in the taxable income;
• interest on the state securities emitted before January 21, 1997 is levied with tax at a tax rate of 0% and is not recorded in the taxable income;
• securities emitted after the January 21, 1997 are levied with tax at a tax rate of 15% and are not included in the taxable income;
• interest on other securities (financial bills, certificates of deposit, etc) are recorded in the taxable income and are levied with profit tax according to the standard procedure.