Dividend Payments and Loan Repayments Abroad in 2025: Key Aspects

Amid the global expansion of Russian companies, many organizations face the need to transfer funds outside the country. In 2025, these procedures require special attention due to new foreign exchange control rules, changes in tax legislation, and the sanctions regime.

1. Dividend Payments Abroad

Taxation of Dividends:

• 15% — standard tax rate for non-residents.
• For non-residents from countries with a Double Taxation Avoidance Agreement (DTAA), lower rates may apply (subject to beneficial ownership conditions).

Payment Procedure:

1. The decision to pay dividends is made by the general shareholders’ meeting or sole participant.
2. Compliance checks: fully paid-up charter capital, no signs of bankruptcy.
3. New 2025 requirement: Advance notification to the Federal Tax Service (FTS) about planned payments.
4. Withholding tax at source (15% or lower) and filing reports.
5. Transaction passport required for amounts exceeding 50,000 rubles (threshold lowered in 2024).

Restrictions:

• Prohibition on payments exceeding 50% of net profit.
• For “unfriendly” countries, approval from the Government Commission on Foreign Investments is required.

2. Repayment of Loans to Foreign Creditors

New Foreign Exchange Control Rules (2025):

• Transaction passport mandatory for transfers exceeding 50,000 rubles.
• Economic justification required: If interest rates are deemed understated, tax authorities may recalculate them at market rates.
• Taxation of interest:
  • 15% personal income tax/profit tax or lower (depending on the creditor’s jurisdiction).
  • Higher rates for loans to non-residents from “unfriendly” countries.

Sanctions Risks:

• Ban on transfers to “unfriendly” countries until September 30, 2025 (exception: companies controlled by Russian residents).

3. Risks Related to the Sanctions Regime

• Recipient screening: Exclusion from sanctions lists (US, EU).
• Correspondent banks: Many foreign banks refuse to process payments from Russia.
• Enhanced scrutiny: The Central Bank of Russia (CBR) has tightened control over beneficiary chains.

4. Alternative Methods for Transferring Funds

1. Reinvesting profits in Russian assets (requires commission approval).
2. Using “friendly” jurisdictions (EAEU, BRICS).
3. Intra-group settlements.

Important: Alternative methods carry risks and require legal consultation.

Key Changes in 2025:

• Stricter currency control (transaction passport threshold lowered to 50,000 rubles).
• New approval requirements for payments to “unfriendly” countries.
• Sanctions restrictions in effect until September 30, 2025.

Recommendations:

• Check the latest regulations on the CBR (cbr.ru) and FTS (nalog.gov.ru) websites.
• Engage legal experts for complex cases, especially involving sanctions