Details of the clarification of the Ministry of Finance of 6 February 2008 regarding withholding tax on dividends paid by Russian companies to their resident shareholders have become available.

Changes to the Tax Code that entered into force on 1 January 2008 refer to the special formula applicable to distributed dividends. The Ministry explains that the formula applies only to dividends distributed to corporate shareholders. It means that dividends paid to the Russian Federation as a state and dividends on shares that are a part of common investment fund assets should not be included into this amount.