Deposit holders should expect taxes. Who will pay and how much?
The law on taxation of income from bank deposits came into force in 2021, but during the pandemic, a temporary moratorium was imposed on its calculation, which was lifted in 2024. Also, this year there have been some changes in the procedure for calculating the amount of tax on deposits.
Deposits in rubles.
Who will pay for deposits in rubles this year? Russians who in the past in 2023 received a profit from an amount of over one million rubles.
It's worth remembering that we're talking about all of a person's contributions, not just one. If three deposits in different banks total more than a million rubles, then the tax will be calculated on the total income and it will be highlighted in a separate column in the annual notification sent by the Federal Tax Service (FTS) at the end of the year.
Previously, this tax was calculated as follows: the amount of interest income minus the tax-free minimum (one million rubles multiplied by the key rate of the Central Bank as of January 1 of the previous year) and the standard 13% on the balance. Now in this formula, instead of a strict link to the Central Bank rate at the beginning of the year, the maximum value of the Central Bank key rate that was in effect as of the first day of each month during the tax period is used.
How will they be charged for 2023?
At the beginning of 2023, the key rate of the Central Bank was 7.5% per annum, then it was gradually increased to 16% per annum at the December meeting. The tax on interest income on deposits opened until December 31, 2023 does not include the total profit on all deposits in the amount of 160 thousand rubles (1 million rubles x 16%).
Let's give an example. In 2023, a Russian had deposits in four banks totaling 2.5 million rubles, interest was accrued on them, on average it was 14% per annum. This means a profit of 400 thousand rubles.
A tax-free threshold (160 thousand rubles) will be subtracted from the amount of annual income (400 thousand). And from the resulting amount (240 thousand) they will accrue 13% to the state treasury. The tax will be 31,200 rubles.
If you try to calculate what tax you may receive for deposits, you need to keep in mind that the Federal Tax Service takes into account both time deposits, savings and other accounts on which interest is calculated as the taxable base.
Deposits in foreign currency
Russians who continue to keep their money in foreign currency deposits will have to pay taxes under the new system, regardless of the size of the rate. All income received is converted into rubles at the Central Bank exchange rate in effect on the date of interest payment. And the standard tax of 13% is charged on the entire amount received.
Who can avoid paying tax?
The following are exempt from tax:
— escrow accounts used in shared construction,
— interest income at a rate of less than 1% per annum (current and salary accounts).
— taxes are not paid on income in the form of interest on bank deposits and account balances paid by inheritance.
“This information is for informational purposes only and does not constitute an individual investment recommendation.”
