The Ministry of Finance of the Russian Federation has taken the initiative to abolish the tax imposed on citizens on income from long-term deposits, which, according to Deputy Chairman of the Federation Council Nikolai Zhuravlev, will help encourage citizens to make long-term investments. The newspaper writes about this “News”.
The Ministry of Finance, together with banks, made a proposal to change this tax in September, supporting its abolition, but a final decision has not been made yet. Currently long term deposits are rare due to the high key rate. While their share in developed countries usually exceeds 10%, in Russia this rate is below 3%.
According to the 2023 results, citizens will have to pay this tax for the first time this year. The law on taxation of interest on bank deposits came into force at the beginning of 2021, but at the end of March 2022, President Vladimir Putin temporarily exempted Russians from paying this law.
To determine the amount of tax-free income, you need to multiply 1 million rubles by the maximum key value in the year in which interest was received.
In 2023, the interest rate reached its maximum level in December, reaching 15% on the first day. This means that the amount of tax-free income from bank deposits will be 150 thousand rubles. Freedom Finance Global analyst Vladimir Chernov estimates that, based on the average annual rate, Russians will have to pay taxes on deposits of about 1.67 million rubles and above. The data is currently being processed, the press service of the Federal Tax Service told Izvestia. It has not yet been possible to estimate the amount of revenue obtained from deposit interest tax.
In September 2023, the Ministry of Finance also came up with a similar initiative. The “Main Guidelines of Budget and Tax Policy” recommend that for tax purposes, interest received on long-term deposits should be taken into account not only for the year in which they were received, but also for all accrued years. These changes are currently being considered as part of the work on the bill, the ministry’s press service said.
Therefore, the Ministry of Finance proposes to take into account the minimum non-taxable amount for long-term deposits not only for one year, but for each year, explains expert Vladimir Saskov from the Institute of Tax Management and Real Estate Economics. Director of the School of Economics, Tax Consultants Association. This will allow Russians to pay less taxes.
Bank of Russia from January to September 2023 was recorded The demand for cash increased, but by the end of the third decade the return of funds to the banking system began. The regulator attributes this to the increasing attractiveness of deposits due to rising interest rates. Ahead of the New Year holiday, financiers recorded another increase in demand for cash.
Previously Mishustin in the name Avoid excessive optimism.