Post sponsored by NewzEngine.com

MIL OSI Translation. Region: Russian Federation –

Source: Mainfin Bank –

How does the FTS calculate tax on income on deposits?

Personal income tax on deposit income has been introduced in the Russian Federation since 2020, but the collection of the tax has been repeatedly postponed due to the coronavirus pandemic and the economic crisis. At the end of 2023, Russians will still have to pay the tax calculated and levied on the basis of the following rules:

interest income is determined in total for all ruble and foreign currency deposits (the term of account opening and placement of funds does not play a role);
exceptions are contributions with a yield of less than 1% per annum;
non-taxable personal income tax base depends on the maximum key rate – in 2023 it amounted to 150 thousand rubles;
tax rate – 13 or 15% (depending on the amount);
due date – not later than December 1, 2024.

“Banks are interested in long-term deposits, so we propose to study the possibility of canceling the tax on deposits opened for a period of more than one year – now there are almost no such products in the portfolios of credit institutions,” – earlier said the Ministry of Finance, the initiative was supported by the Central Bank of Russia.

The FTS takes into account income on all of the taxpayer’s deposits in the banksIf the amount of interest does not exceed 150 thousand roubles, personal income tax will not have to be paid.

Who in Russia will have to pay personal income tax on deposit income?

The Central Bank of the Russian Federation repeatedly raised the key rate in 2023, which led to an increase in the tax-free base, but also the yield on deposits increased significantly (from 8.13% to 14.52%). Analysts have calculated that the obligation to pay personal income tax will arise for citizens who have savings in banks amounting to more than 2 million rubles.

At the same time, the tax does not contribute to the decline in the popularity of bank deposits – deposits remain a conservative investment instrument with guaranteed profitability and protection against losses. Deposits are easy to open, the scheme of income accrual is clear to citizens, and money can be withdrawn from the account at any time without restrictions.

15:20 01/09/2024

Source:

Please note; This information is raw content directly from the source of the information. It is accurate to what the source states and does not reflect the position of MIL-OSI or its customers.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

MIL OSI News (multilanguage service)