The Federal Tax Service, known as the FTS, has begun sending tax notices to Russians who earn interest from bank deposits. Reports say this information is appearing in taxpayers’ personal accounts, as RBC notes.
FTS notices specify the banks where deposits are held, the total interest accrued, the tax base after subtracting 150,000 rubles as a non‑taxable threshold, and the final tax due.
Russia introduced a deposit income tax in 2021, but payments were postponed several times. The plan calls for tax collection based on 2023 results, with payments to begin in 2024. The levy targets those with interest from bank accounts that surpass the tax-free portion. The deadline for settlement is December 1, 2024, aligned with other annual duties such as property or vehicle taxes.
How is tax calculated?
The tax uses the 2023 income from all deposits and accounts, whether in rubles or in foreign currencies. The opening date of the account does not matter; what matters is the income earned in the previous year. Interest from deposits with rates under 1 percent and income from inherited deposits are not taxed.
The tax is applied only to a portion of the interest. The non‑taxable portion is determined by applying the Central Bank’s maximum annual rate to 1 million rubles. In 2023 this rate rose from 7.5% to 16%. The rate in effect on December 1 sets the non-taxable portion at 15%. If 2023 interest does not exceed 150,000 rubles, no tax is due. When the income exceeds that level, tax is owed on the excess at 13% or 15%, with 15% applying to annual incomes above five million rubles.
Who will be affected by the deposit tax?
The total bank deposits in Russia rose by 5.4 percent in the first quarter of 2024, reaching 63.38 trillion rubles, according to the Deposit Insurance Agency. While deposits dipped slightly in early 2023, 2024 saw a rebound in large corporate deposits as insured funds were expanded.
Individual deposits eligible for the tax grew by 3.7 percent to 46.7 trillion rubles. The biggest gains were seen in balances between 3 and 10 million rubles and in sums above 10 million rubles. Accounts with balances up to 1 million rubles remain the most common, though their growth was more modest.
Finance Ministry representatives say the tax is calculated from annual results. The Federal Tax Service computes the tax for each taxpayer and issues notices. The levy targets those who held funds in 2023 and earned more than 150,000 rubles in interest, with payment due by December 1, 2024. Going forward, similar annual deadlines apply for income earned in the prior year.