diff --git a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/lower/AnnotationLowering.kt b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/lower/AnnotationLowering.kt
index 1c0db360a5c..32436d16b6a 100644
--- a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/lower/AnnotationLowering.kt
+++ b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/lower/AnnotationLowering.kt
@@ -22,19 +22,13 @@ internal val annotationPhase = makeIrFilePhase<JvmBackendContext>(
     description = "Remove constructors of annotation classes"
 )
 
-/**
- * Remove the constructors from annotation classes.
- */
 private class AnnotationLowering : FileLoweringPass, IrElementTransformerVoid() {
     override fun lower(irFile: IrFile) = irFile.transformChildrenVoid(this)
 
-    override fun visitClass(declaration: IrClass): IrStatement {
-        if (!declaration.isAnnotationClass) return super.visitClass(declaration)
-
-        declaration.declarations.removeIf {
-            it is IrConstructor
+    override fun visitClass(declaration: IrClass): IrStatement =
+        declaration.transformPostfix {
+            if (isAnnotationClass) {
+                declarations.removeIf { it is IrConstructor }
+            }
         }
-
-        return declaration
-    }
 }
diff --git a/compiler/testData/codegen/box/annotations/nestedAnnotation.kt b/compiler/testData/codegen/box/annotations/nestedAnnotation.kt
new file mode 100644
index 00000000000..291e6d70a8f
--- /dev/null
+++ b/compiler/testData/codegen/box/annotations/nestedAnnotation.kt
@@ -0,0 +1,8 @@
+annotation class Foo {
+    annotation class Bar
+}
+
+@Foo.Bar
+fun box(): String {
+    return "OK"
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
index 5af4acccfda..cfec674664f 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
@@ -136,6 +136,11 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             runTest("compiler/testData/codegen/box/annotations/kt10136.kt");
         }
 
+        @TestMetadata("nestedAnnotation.kt")
+        public void testNestedAnnotation() throws Exception {
+            runTest("compiler/testData/codegen/box/annotations/nestedAnnotation.kt");
+        }
+
         @TestMetadata("nestedClassPropertyAsParameter.kt")
         public void testNestedClassPropertyAsParameter() throws Exception {
             runTest("compiler/testData/codegen/box/annotations/nestedClassPropertyAsParameter.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
index 9ca6bdb907b..b3dce28991f 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/LightAnalysisModeTestGenerated.java
@@ -141,6 +141,11 @@ public class LightAnalysisModeTestGenerated extends AbstractLightAnalysisModeTes
             runTest("compiler/testData/codegen/box/annotations/kt10136.kt");
         }
 
+        @TestMetadata("nestedAnnotation.kt")
+        public void testNestedAnnotation() throws Exception {
+            runTest("compiler/testData/codegen/box/annotations/nestedAnnotation.kt");
+        }
+
         @TestMetadata("nestedClassPropertyAsParameter.kt")
         public void testNestedClassPropertyAsParameter() throws Exception {
             runTest("compiler/testData/codegen/box/annotations/nestedClassPropertyAsParameter.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
index f17e4287a76..0cbe3e088c5 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/FirBlackBoxCodegenTestGenerated.java
@@ -136,6 +136,11 @@ public class FirBlackBoxCodegenTestGenerated extends AbstractFirBlackBoxCodegenT
             runTest("compiler/testData/codegen/box/annotations/kt10136.kt");
         }
 
+        @TestMetadata("nestedAnnotation.kt")
+        public void testNestedAnnotation() throws Exception {
+            runTest("compiler/testData/codegen/box/annotations/nestedAnnotation.kt");
+        }
+
         @TestMetadata("nestedClassPropertyAsParameter.kt")
         public void testNestedClassPropertyAsParameter() throws Exception {
             runTest("compiler/testData/codegen/box/annotations/nestedClassPropertyAsParameter.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
index e4cccfcc71c..757dd98ec87 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/ir/IrBlackBoxCodegenTestGenerated.java
@@ -136,6 +136,11 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
             runTest("compiler/testData/codegen/box/annotations/kt10136.kt");
         }
 
+        @TestMetadata("nestedAnnotation.kt")
+        public void testNestedAnnotation() throws Exception {
+            runTest("compiler/testData/codegen/box/annotations/nestedAnnotation.kt");
+        }
+
         @TestMetadata("nestedClassPropertyAsParameter.kt")
         public void testNestedClassPropertyAsParameter() throws Exception {
             runTest("compiler/testData/codegen/box/annotations/nestedClassPropertyAsParameter.kt");
diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java
index 510e0b1cfa9..99d57ed9dc7 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/ir/semantics/IrJsCodegenBoxTestGenerated.java
@@ -41,6 +41,11 @@ public class IrJsCodegenBoxTestGenerated extends AbstractIrJsCodegenBoxTest {
             KotlinTestUtils.assertAllTestsPresentByMetadataWithExcluded(this.getClass(), new File("compiler/testData/codegen/box/annotations"), Pattern.compile("^(.+)\\.kt$"), null, TargetBackend.JS_IR, true);
         }
 
+        @TestMetadata("nestedAnnotation.kt")
+        public void testNestedAnnotation() throws Exception {
+            runTest("compiler/testData/codegen/box/annotations/nestedAnnotation.kt");
+        }
+
         @TestMetadata("nestedClassesInAnnotations.kt")
         public void testNestedClassesInAnnotations() throws Exception {
             runTest("compiler/testData/codegen/box/annotations/nestedClassesInAnnotations.kt");
diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
index 03738ad9638..0e6c619b1f2 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
@@ -41,6 +41,11 @@ public class JsCodegenBoxTestGenerated extends AbstractJsCodegenBoxTest {
             KotlinTestUtils.assertAllTestsPresentByMetadataWithExcluded(this.getClass(), new File("compiler/testData/codegen/box/annotations"), Pattern.compile("^(.+)\\.kt$"), null, TargetBackend.JS, true);
         }
 
+        @TestMetadata("nestedAnnotation.kt")
+        public void testNestedAnnotation() throws Exception {
+            runTest("compiler/testData/codegen/box/annotations/nestedAnnotation.kt");
+        }
+
         @TestMetadata("nestedClassesInAnnotations.kt")
         public void testNestedClassesInAnnotations() throws Exception {
             runTest("compiler/testData/codegen/box/annotations/nestedClassesInAnnotations.kt");