The government wants to cancel the exemption for the sale of foreign securities

The government has submitted a bill to the State Duma that proposes to abolish the three-year investment tax benefit for the sale of foreign securities on Russian stock exchanges. Securities from EAEU countries will be exempt.

Bill published in the State Duma database. It sets new standards as part of the reform of the individual investment account (IIA) mechanism and the transition to providing deductions only for long-term savings.

According to current legislation, since 2014, an investor can exempt profits from the sale of securities from tax if he has owned them for at least three years. The benefit now applies to Russian stocks, bonds, exchange-traded mutual funds, foreign stocks and bonds, ETFs that are traded on Russian stock exchanges. The maximum deduction amount is RUB 3 million. per year, for three years – 9 million rubles. The tax base may be reduced by this amount.

The government proposes to extend the benefit only to securities of Russian organizations that are traded in the Russian Federation, and securities of foreign organizations that are traded on Russian stock exchanges and whose place of registration is in the EAEU countries. If the document is adopted, the benefit will not apply to foreign stocks, bonds and ETFs. The norm will come into force a month after the publication of the law, but not earlier than the first day of the next tax period for personal income tax.

Read more about expanding the tax deduction mechanism in the Kommersant article. “The rules of subtraction have been determined for long money”.

Leonid Uvarchev