How to pay taxes on dividends of foreign companies

When investing in foreign securities and receiving income from them, the investor must independently pay taxes.

FinEx ETF issued fund

The amount of tax on dividends of foreign companies depends on the country in which the company is registered (more precisely, on the terms of the agreement

The tax rate on dividends in Russia is 13%. And if in the country where dividends are paid there is a lower rate, then the investor will need to pay in addition to the Russian Federation only the difference. If it is large, then you do not need to pay anything extra (but you still have to submit a declaration).

You can check information about the issuing country by the ISIN-code of the paper on the website

You can find out the ISIN on the website

FXRD with dividend payment is incorporated in Ireland. Irish ETFs

The investor must fill out a 3-NDFL declaration (

You can request these documents in your broker’s application.

You can fill out and submit a 3-NDFL declaration online, in

In the window that opens, you need to fill in the general information and go to the «Income» section. All information to fill out here can be obtained from the broker’s report.

FXRD pays dividends in rubles, so we select the Russian ruble in the column “Information about the currency of income”. Since Ireland does not withhold tax from the investor on the FXRD fund, we put 0 in the section «Information about tax paid in a foreign country».

Dividends on FXRD are paid twice a year, so for the second payment you need to click on the «Add source of income» button again and fill in the data for the second payment. If the investor also receives dividends from other foreign companies, then they also need to be added according to the same principle.

The total amount of tax that the investor must transfer to the FTS will be calculated automatically (on the View tab → Totals). Here you need to attach supporting documents and send a declaration.

The tax return must be filed for the past tax period (for the previous calendar year). You need to report by April 30. In this case, the tax can be paid until July 15th. So, when receiving dividends in 2021, the investor must complete and submit a declaration by April 30, 2022 and pay tax by July 15, 2022.

The investor submits only one declaration, regardless of how many times the company paid dividends per year.

The first dividend payment for the FXRD fund will take place in February 2022. Thus, an investor who will receive dividends on the fund’s shares will need to file a declaration only in 2023.

The opinion of the column authors may not coincide with the opinion of the FinEx editorial staff. The decision on the use of securities and any other financial instruments is made by the user independently. The information in the text does not constitute an individual investment recommendation.