The Russian finance ministry has proposed lowering the tax burden on transactions with rouble- denominated euro bond issues, Russian depositary receipts and dividend payments to attract foreign capital inflows.

The tax code now obliges companies and banks to pay taxes on non-residents’ income related to Russian euro bonds. In order not to pay these levies, euro bonds are usually issued via entities established abroad, such as Luxembourg and Ireland.

The finance ministry said the proposed amendments envisaged no tax liability for a Russian issuer’s interest payments. – (Reuters)