Tax Administration
Tax Administration Services for Income from Financial Instruments Issued in Accordance with U.S. Legislation
Central Securities Depository" JSC (Central Depository) provides tax administration services for financial instruments issued in accordance with US legislation.
Central Depository, on the basis of the Qualified Intermediary Agreement concluded in 2024 with the U.S. Internal Revenue Service (IRS), has obtained the status of a Non-Withholding Qualified Intermediary, which allows it to provide tax administration services for instruments issued in accordance with U.S. legislation.
The service is intended for depositors of the Central Depository and their clients who are holders of financial instruments issued in accordance with US legislation.
As part of the service, the Central Depository carries out the following:
1. The verification, acceptance and storage of tax identification forms of depositors and their clients;
2. Identifying holders of U.S. instruments in order to determine their eligibility for reduced tax rates;
3. Compiling summary information and providing it to foreign tax agents for the correct taxation of income on U.S. instruments;
4. Preparing annual tax reporting in accordance with U.S. legislation and submitting it to the IRS, as well as to depositors (upon their request).
The depositor completes and submits a tax identification form (its own or that of its client) to the Central Depository in accordance with IRS requirements. The form must be received by the Central Depository within a timeframe that ensures it is current as of the date income is paid on U.S. instruments. If information in a form that has already been accepted changes, the depositor is obligated to provide the Central Depository with an updated form within 30 calendar days of such change. Information from the annual tax reporting relating to the depositor and/or its client may be obtained by the depositor upon written request — no more than once a year, following the close of the tax period.
Under the QI Agreement, the Central Depository is not authorized to provide consulting services, give recommendations or explanations regarding the completion of tax identification forms, or make changes to forms that have been received. Depositors and their clients complete tax identification forms independently, in accordance with IRS requirements, and submit them to the Central Depository.
If information in an accepted tax identification form changes, the depositor is obligated to provide the Central Depository with an updated form within 30 calendar days of such change.
Yes, information from the annual tax reporting relating to the depositor and/or its client is provided by the Central Depository to that depositor upon written request. Such information is provided using the prescribed IRS form, following the close of the tax period, but no more than once a year.
If, as a result of the application of an incorrect U.S. tax rate, an excess amount of tax was withheld from a depositor or its client, a refund of the overpaid amount, in accordance with U.S. legislation, is possible only in the tax period in which it was paid, and only if the foreign tax agent has made a favorable decision to refund the overpaid amount.
Reserve addresses
If the main portal of the Central Securities Depository is unavailable, you can use the backup portals: