The Ministry of Finance proposes to study the issue of abolishing the tax on deposits longer than one year

The Ministry of Finance of the Russian Federation proposes to consider the possibility of exempting Russians from paying tax on deposits for a period of one year or more. Such a proposal included in the “Main Directions of Budget, Tax and Customs Tariff Policy for 2024 and the Planning Period of 2025 and 2026” prepared by the Ministry of Finance.

The Ministry of Finance believes that income from deposits over one year can be transferred to a tax-free base “during the periods for which interest on the deposit is accrued.”

According to the norms of the Tax Code, value added taxes (NDFL) are not levied on interest income on deposits and accounts in an amount that depends on the key rate. The maximum indicator of the Bank of Russia when calculating the amount of tax for the reporting period is multiplied by a million rubles. The amount received is deducted from what the depositor received for the accounting year. From this result, individuals are subsequently charged 13% tax.

Russian President Vladimir Putin announced the introduction of personal income tax on income from interest on deposits in Russian banks over 1 million rubles. in March 2020. Income from deposits or investments exceeding this amount was then taxed at 13% (same as regular personal income tax). However, in 2021–2022, by decision of the head of state, a tax benefit was in force: citizens could not pay personal income tax on interest income on bank deposits received in 2021–2022. Thus, in 2022 (on income received in 2021) and 2023 (on income received in 2022), there was no need to pay such a tax.

Alexander Kislov