Putin's New Tax Law Extends Benefits for Long-Term Securities Investors

Russian President Vladimir Putin has updated tax rules for long-term securities. The new law, signed recently, changes how tax exemptions apply to investors. It also adjusts the criteria for high-tech sector securities to qualify for these benefits.

The law came into force in January 2023 and will stay in place until December 30, 2026. Under the previous rules, 47 Russian companies or securities were classified as 'high-tech sector securities.' To qualify, they had to meet strict conditions: listing on the Moscow Exchange, earning at least 30% of revenue from high-tech activities, and complying with technological classifiers approved by the Ministry of Industry and Trade.

Now, the holding period for tax exemption includes time when securities were transferred under a broker loan or repo agreement. This means investors can still qualify for tax relief even if their assets were temporarily lent out. Capital gains from selling securities held for over five years will remain exempt from personal income tax, regardless of such transactions.

The updated law also revises the requirements for high-tech sector securities. These changes aim to refine which companies and assets qualify for tax benefits when sold.

The amended rules provide clearer conditions for tax exemptions on long-term securities. Investors holding qualifying assets for more than five years will continue to avoid capital gains tax, even if the securities were involved in lending or repo deals. The law remains active until the end of 2026, giving businesses and investors time to adapt.