Since the beginning of 2024, Russians have begun to open fewer individual investment accounts

Since the beginning of 2024, the number of openings of new individual investment accounts (IIA) has decreased significantly. This may be due to both the decrease in the attractiveness of the stock market and the emergence of a new form of individual investment account to replace the previously existing two account options. Market participants see in the new type of account the uncertainty of tax conditions, as well as the risks of early return of funds on unattractive conditions.

According to the Moscow Exchange, in January 2024, 8.2 thousand new individual investment accounts were opened. A year earlier, 2.5 times more of them were opened – more than 21 thousand, and on average in 2023 more than 50 thousand IIS were opened. In total, by the end of January, investors had 5.8 million individual investment accounts.

Partly, the decrease in interest in such instruments may be due to both the general cooling of investors towards the stock market against the backdrop of high deposit rates (see Kommersant on January 15), and the emergence of a new type of IIS – the third type. Until 2024, investors could choose between accounts of types IIS-1 and IIS-2, which differed in the way tax deductions were made. IIS-1 allowed personal income tax when depositing an amount of up to 400 thousand rubles into the IIS. per year (type A). IIS-2 allowed not to pay tax on income from exchange transactions (type B). In both cases, it was necessary to keep funds in the account for at least three years and not withdraw money from the account during this period.

Since January of this year, private investors have the opportunity to open only IIS-3 (albeit in the amount of up to three). It actually combines both options for tax deductions (subject to annual contribution limits to the account), but the minimum period for which funds must be placed in this account is extended to five years.

Alfa Bank noted that the majority of clients previously chose type A deduction. Sberbank also noted that for IIS opened in previous years and for which deductions had already been received, statistics show that the vast majority of clients (95%) chose type A.

The main risk is related to the fact that changes in the Tax Code of the Russian Federation related to IIS-3 have not yet been adopted, and this creates tax uncertainty in terms of receiving deductions, says Liliya Denezhka, head of the development department of the IIS “BCS World of Investments”. IIS-3 is aimed at supporting long-term investments in the Russian economy, and for this, regulators plan to make a number of amendments to tax legislation so that IIS can combine the tax benefits of previous types of accounts – IIS-1 (type A deduction) and IIS-2 (deduction type B), explained in Sberbank. Such amendments will enable investors to obtain the right to an annual tax deduction on the amount of contributions to IIS up to 400 thousand rubles, and after the minimum period of validity of the IIS – on investment income on IIS-3 in the amount of up to 30 million rubles.

It is also important for clients to take into account the following nuance: according to the amendments being discussed, the term of the IIS increases, but the period for presentation for deduction does not increase, Sovcombank Investments noted. If previously the client could, at the end of the minimum period of the IIS, submit for deduction the amount of the contribution for the entire period, now, in order not to lose the right to deduction, it is advisable to declare it immediately after the end of the tax period. If a life situation forces a client to close such an IIS ahead of schedule, then all deductions from penalties for several years will have to be returned, experts note.

Investors who already have an open IIS-1 or IIS-2 will behave cautiously, taking a closer look at how IIS-3 will function in practice, says Capital Lab partner Evgeniy Shatov. In his opinion, IIS-3 carries numerous risks. There are not many investors in Russia who are ready to freeze funds for 5–10 years, much less actively trade in order to receive benefits and not pay personal income tax on income, since there is virtually no culture of long-term investment, he believes. At the same time, the conditions for deduction and early return of funds within the framework of IIS-3 are unattractive, so many investors would rather prefer money in a regular brokerage account and without special benefits, but with the ability to return the funds at any time, added Mr. Shatov. “Most likely, the increase in clients with IIS will be relatively low, and the regulator, in fact, does not offer alternative options after 2024,” the expert concluded.

Ksenia Kulikova, Olga Sherunkova