Finance Ministry proposes to abolish personal income tax benefits for almost all foreign securities – Kommersant

The Ministry of Finance believes that tax incentives for long-term ownership of securities should only apply to securities of Russian issuers and companies registered in the countries of the Eurasian Economic Union (EAEU). The Ministry sent the relevant amendments to the Tax Code (TC) to the government, reports RBC with reference to sources.

Amendments are proposed to be made in sub. 1 p. 1 art. 219.1 NK. Now it is assumed that an investor who continuously owns securities for more than three years can claim a tax deduction in the amount of a positive financial result received in the tax period from the sale of securities circulating on an organized market. These assets include securities admitted to trading on Russian stock exchanges (the origin of the issuer is not specified separately) and investment units of open mutual investment funds managed by Russian management companies. Securities of foreign issuers admitted to trading on foreign stock exchanges are not subject to privileges.

The Ministry of Finance proposes to use as a basis for calculating the deduction only income from securities of Russian companies and those issuers whose place of registration is located on the territory of one of the EAEU countries. The condition remains unchanged that the securities must be traded on one of the Russian stock exchanges. If the amendments are adopted, they will come into force on January 1, 2024.

From October 1, 2022, the Central Bank introduced restrictions on the purchase of securities of issuers from unfriendly countries for unqualified investors, this ban extended until October 2023. Also from this year entered by virtue of a complete ban on the purchase of these securities by inexperienced investors. In addition, from 1 April changed order of purchase of securities of companies of friendly countries for unqualified investors.

Laura Keffer