Taxation

Question: I am the Company’s Client and am not a citizen of Russian Federation. At the same time, I invest into shares of Russian companies and receive dividends. I am resident of the country with whom Russian Federation has signed the agreement of avoidance of double taxation. What is needed from me in order to pay 13% instead of 30% in tax?

Answer: For Clients, who receive income from transactions or instruments falling under taxation in Russian Federation – tax certificate or any other document confirming tax residence for the current tax period (calendar year). It is necessary to provide this document on annual basis.

Documents provided to the tax agent of Russian Federation shall be translated into Russian and marked with an apostille, and the notary shall verify this translation, unless required otherwise by the international agreement between Estonia and the country of registration/citizenship of the Client (final recipient of income from transactions with financial instruments).

Question: I would like to submit the tax declaration and pay taxes on income gained from operations on international exchanges. What documents the Company can provide?

Answer: The Company can provide consolidated financial statements from 1st January to 31st December. Taxpayer calculates taxable base independently.

Questions: Does the Company act as the tax agent?

Answer: According to the current legislation of Estonia, AS KIT Finance Europe does not act as the tax agent for foreign investors (non-residents of Estonia) gaining income from transactions with financial instruments. Investors (non-residents of Estonia and Cyprus) gaining income from transactions with financial instruments are exempt from payment of any taxes on the territories of Estonia and Cyprus.

The non-resident Clients of the USA gaining income from transactions with American Depositary Receipts do not pay taxes on such income in the territory of the USA.

All investors gaining income from transactions with financial instruments and with the use of services of Estonian investment firms, independently estimate and transfer into the budget income tax in accordance with the legislation of jurisdiction of investors.