State officials cannot dust the register of subpoenas, and Russians began to pay a 43% tax on dividends from the USA

State officials cannot dust the register of subpoenas, and Russians began to pay a 43% tax on dividends from the USA

Almost all the most important and interesting financial news in Russia and the world in a week: Kiwi investors were shaved on the Russian stock exchange, the Chinese stock market is getting worse and worse, Bitcoin is persistently not growing, and the clouds over Changpeng Zhao continue to thicken.

Financial news from Russia, unfortunately, mostly does not correspond to the spirit of Habra. So you can read the full text version of this news release here, or watch the video.

Currently, Russians pay a 43% tax on American dividends on the St. Petersburg Stock Exchange

In August 2023, the Russian president came up with a witty joke: the unilateral partial termination of tax agreements with as many as 38 countries at once. At that time, the SPB Exchange reassured everyone that the amount of taxes on dividends from American shares of this type should not be affected, but…

…okay, I think you get what that “but” might mean. Later, in November 2023, the SPB Exchange was included in the US sanctioned SDN list, and its pocket depository for this case was excluded from the special FATCA list, which previously allowed the US to retain only 10% of dividends distributed by American companies to Russians.

In the dry balance, Tinkoff broker support now explains the situation to everyone like this: not only is there now an automatic 30% withholding on dividends coming from the States (instead of 10%, as it was before) – also this withholding cannot be counted in VAT payment account in Russia! Please, they say, declare to the Russian Federation all the dividends received in 2023 and pay an additional 13-15% on top (so that the full tax burden will be, respectively, 43-45%), and from January 2024, instead of you, he will helpfully do it himself broker. As they say: transferring half of the income to the budget has never been so convenient!!

The Tinkoffs write that in November 2023, they sent a request to the Ministry of Finance on the topic “maybe, after all, this 13% in the Russian Federation does not need to be paid again ๐Ÿ‘‰๐Ÿ‘ˆ?” – But, judging by the fact that the visa is still there, it is not worth hoping for a positive answer. Although, in any case, if you have the opportunity to withdraw tax “surcharge” to the budget (within legal terms, of course), it seems reasonable to do so.

Meanwhile, residents of the Russian Federation, who invest in American shares through the foreign broker Interactive Brokers, still pay 10% of the dividends to the USA and then pay an additional 3% to the Russian budget – the total tax for them is three times lower.

Master class on shaving Australian birds

On January 18, the Magnit retail chain reported that the second round of buying out the company’s shares from foreigners was completed (in total, almost 30% of the stock has been purchased at the moment). According to the current laws of the Russian Federation, such repurchase of shares from foreigners must be made at a discount of at least 50% from the market price. Russian investors are triumphant – foreign rich people got their shoes!!

And last week, the Qiwi group of companies also announced an interesting restructuring: the entire Russian part of the business (which accounts for approximately 90% of all revenue) will be sold to its own director for only 24 billion rubles. At the same time, the market capitalization of the entire company as early as mid-2023 amounted to 40+ billion rubles, and the payment for its best part will not be transferred immediately in full, but “for payments” (read: in cheaper money later).

A brief visual explanation of the situation

Well, you got it, right? Taking into account the fact that Qiwi is listed on the American Nasdaq exchange, it can be said that the Russian investors in this case acted as proxies for the same “foreign tycoons” from whom they bought the assets at a discount. Quotations of Kiwi depositary receipts on Mosbourge fell by 20%+.

But this is not a problem! The company announced that it will use the proceeds to buy back shares from all investors who were dissatisfied with such fun schedules. However, the volume of redemption will be no more than 10% of all shares (that is, there will not be enough for everyone), and the price will not exceed 581 rubles. per share (despite the fact that before the announcement of this whole storm plan, shares were traded at 625 rubles).

I would like to remind you that these Kiwi receipts started trading on the Moscow Exchange in October 2013 at 1,350 rubles per piece, and until now their exchange price hovers around 475 rubles. Even if we take into account the dividends paid during this time, we will get an impressive nominal return of -48% over 10 years. And if we also take into account the fact that during this time the ruble has depreciated due to inflation by about two times, we will get an effective compounding of investors’ capital in Qiwi almost four times. Warren Buffett nervously smokes on the sidelines!

And one more picture to remember for all investors

State officials are still not sure how to proceed with the creation of a register of conscripts

At the beginning of 2023, the “law on electronic subpoenas” was passed (lawyer Kyryl Korshunov and I analyzed it in detail here): then the implementation of the register of these subpoenas was promised to be implemented by the fall of 2023. As this deadline approached, it became clear that the stone flower would not work – and the president had already strictly instructed to conduct at least the call for 2024 using this register.

Well, now there is already news that the plan to create a register of conscripts on the basis of the already existing Gostech platform has been canceled (you can’t shove a state secret in there), and this promising startup project will be started from scratch. Which seems to hint that the terms may be a little longer.

If you read the law on subpoenas literally, then until all these registers are up and running, any features with “automatic delivery of electronic subpoenas upon publication in the register” should not start either; but how it will work in practice is a separate question…

The stock market will not grow well, the party may be taken away by a cat-wife

In China, the stock market continues to fall: it has practically halved in the last few years. To remedy the situation, the Wise Party plans to create a “market rescue fund” of approximately $300 billion.

Fun fact: over 30+ years, China’s stock market has delivered roughly zero returns to international investors (and that’s before factoring in accumulated inflation!)

How did it happen that China’s economy grew as much as 13 times over three decades, and the stock market did nothing good for investors – they discussed it on my channel here.

BITCOIN BITCOIN BITCOIN

Kryptans are in sadness: a whole bunch of exchange-traded funds finally poured into Bitcoin – and quotes on this news for some reason jumped down, not up. Disorder! Urgently found guilty: this is the entire legacy of the curly-haired Bankman-Fried, because through him the bankrupt liquidators of the FTX crypto exchange are now massively selling off the stocks of the illiquid Bitcoin fund GBTC.

The next pumping topic from our Bitcoin Tuzemun Almanac is the halving in April 2024, when the reward to BTC miners will be halved. I will keep you posted!

In the light of the new-fashioned fight against feminisms, I also propose to do something with the influx of foreign borrowings in the language – to introduce the term “bitcoin miners” instead of the unorthodox “miners”

The clouds over Changpeng continue to thicken

Changpeng Zhao (the former head of Binance) has once again been refused to leave the US on bail of $4.5 billion. Let me remind you that last year he himself came to the States and pleaded guilty to complicity in money laundering practices within Binance – and now he is awaiting trial in in February, where a preventive measure will be assigned to him.

I think Changpeng is texting his lawyers right now like, โ€œGuys, what are you doing? We agreed that this whole mess with pleading guilty would be like that!

Good news of the week

Russia and Oman signed an agreement on avoidance of double taxation. To my numerous readers of Russian-Omani origin, I convey warm greetings; to everyone else – I sympathize, you guys are somehow holding on there!


I have more financial news and author analytics in the Telegram channel RationalAnswer.

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