Russian Ministry of Economic Development together with the business community has developed a proposal that Russian private long-term investors shall pay the less income tax for dividends the longer they hold the shares.
Currently the income tax for dividends received by Russian private investors is 13%. It is suggested that if an investor holds the shares for more than 3 years, the applicable income tax rate shall be 8%; if more than 5 years – 3%; more than 7 years – 0%. Special taxation conditions may be offered for investments in shares exceeding 100 million rubles (approx. 1.1 million euro).
The proposal of the Ministry also includes many other benefits for private investors – it is suggested to eliminate double taxation of income from investment funds, to allow investment funds to issue tokes, to free from tax the coupons of bonds issued to invest state projects, and many other.
If supported by the Parliament, the new regulations shall attract more private investments into Russian economy.