MMC Norilsk Nickel’s Dividend Policy aims to balance the interests of the Company and its shareholders, enhance the Company’s investment case, boost its market cap and protect shareholder rights.
The Company’s Regulations on the Dividend Policy approved by the Board of Directors seek to ensure the transparency of the mechanism for determining the amount of dividend and the dividend payout procedure.
The decision to pay dividends is made by the General Meeting of Shareholders based on recommendations of the Board of Directors. The General Meeting of Shareholders determines the dividend amount and record date, which, as per Russian law, shall be set no earlier than 10 days before and no later than 20 days after the General Meeting of Shareholders.
Dividends to a nominee shareholder listed on the shareholder register shall be paid within 10 business days, while dividends to other persons listed on the shareholder register shall be paid within 25 business days after the record date.
Individuals/entities whose rights to shares are recorded in the shareholder register are paid dividends by the registrar, IRC – R.O.S.T., upon Nornickel’s instruction.
Individuals/entities whose rights to shares are recorded by a nominee shareholder are paid dividends via their nominee shareholder.
Any person who has not received the declared dividend due to the fact that their accurate address or banking details were not available to the Company or the registrar as required, or due to any other delays on the part of the creditor, may, in accordance with Clause 9 of Article 42 of Federal Law No. 208-FZ On Joint Stock Companies dated 26 December 1995, request payment of unpaid dividend within three years from the date of the resolution to pay dividends.
Dividends in 2020
On 13 May 2020, the Annual General Meeting of Shareholders approved a dividend of RUB 557.2 per share for 2019. The amount of dividend payout totalled RUB 88 billion (about USD 1.2 billion).
On 10 December 2020, the Extraordinary General Meeting of Shareholders approved a dividend of RUB 623.35 per share for 9M 2020, with the amount of dividend payout totalling close to RUB 98 billion (about USD 1.4 billion).
On 9 April 2021, the Board of Directors recommended that the Annual General Meeting of Shareholders approve a dividend of RUB 1,021 per share (about USD 13.25) for FY2020.
|Period||Declared dividend||Dividends paid Dividends are paid out to shareholders within three years from the respective dividend resolution date. The dividend payouts are shown as of 31 December 2020 accordinf IFRS reporting.|
|RUB mln||USD mlnCalculated at the exchange rate of the Bank of Russia as of the declaration date or payment date, respectively.||RUBmln||USD mlnCalculated at the exchange rate of the Bank of Russia as of the declaration date or payment date, respectively.|
|Total for 2020||260,246||3,320||n/a||n/a|
|FY2020On 9 April 2021, the Company’s Board of Directors recommended that the Annual General Meeting of Shareholders approve a dividend for FY2020.||161,603||2,096||n/a||n/a|
|Total for 2019||323,647||4,909||323,482||5,011|
|Total for 2018||248,214||3,741||248,983||3,827|
|Total for 2017||131,689||2,131||131,546||2,137|
|Total for 2016||140,894||2,379||140,758||2,360|
Income from securities is taxable pursuant to the applicable tax laws of the Russian Federation (Chapter 23, Personal Income Tax, and Chapter 25, Corporate Income Tax, of the Russian Tax Code).
Under international double taxation treaties to which the Russian Federation is a party, non-Russia tax residents can claim a reduced rate of withholding tax on Russia source income, or relief from tax in Russia.
To claim these benefits, non-residents need to submit relevant confirmations to their Russian tax agent paying the income:
- A confirmation of permanent residence in a state with which the Russian Federation has a double taxation treaty (tax residency certificate)
- A confirmation that they meet other conditions for application of a reduced rate, if such conditions (or restrictions) are set forth in the applicable treaty
- Should they fail to provide such confirmations by the date of income payment, the tax shall be withheld at the standard rates stipulated by the Russian Tax Code.
Dividend tax formula The formula is not applicable to dividends paid to Russia non-residents.
AT = P × TR × (D1− D2)
AT — amount of tax to be withheld from the income of the recipient of dividends
P — proportion of the dividend amount payable to one recipient to the total dividend amount to be distributed
TR — tax rate stipulated by Subclauses 1–2, Clause 3, Article 284 or Clause 1, Article 224 of the Russian Tax Code
D1— dividend amount to be distributed among all recipients
D2 — dividend amountExcluding the dividend amount eligible for a zero tax rate pursuant to Subclause 1, Clause 3, Article 284 of the Russian Tax Code.received by Nornickel, provided that previously this amount was not included in the taxable income
Taxation of income from securities
|Shareholder||Income from transactions||Interest income||Dividend income|
|Residents|| 13% |
Or 0% if Nornickel shares are sold, provided that by the selling date such shares have been held for more than five years and the requirements are met for the share of real estate in Nornickel’s assets as outlined in Clause 2, Article 284.2 of the Russian Tax Code.
If the income is paid after 1 January 2021, a tax rate of 15% applies to amounts over RUB 5 mln for the reporting period.
|13%If the income is paid after 1 January 2021, a tax rate of 15% applies to amounts over RUB 5 mln for the reporting period.||13%If the income is paid after 1 January 2021, a tax rate of 15% applies to amounts over RUB 5 mln for the reporting period.|
|Non-residents||30%Or 0% if Nornickel shares are sold, provided that by the selling date such shares have been held for more than five years and the requirements are met for the share of real estate in Nornickel’s assets as outlined in Clause 2, Article 284.2 of the Russian Tax Code.||30%||15%|
|Residents||20%Or 0% if Nornickel shares are sold, provided that by the selling date such shares have been held for more than five years and the requirements are met for the share of real estate in Nornickel’s assets as outlined in Clause 2, Article 284.2 of the Russian Tax Code.||20%||13%Or 0% if as of the date of the dividend resolution a Russian entity has been owning 50% (and more) of shares in Nornickel’s authorised capital for 365 days (and more).|
|Non-residents||20% If the income is classified as income of a foreign entity from sources in Russia in accordance with Clause 1, Article 309 of the Russian Tax Code.||20%||15%|