In 2024, Russians will face taxes on the interest income earned from individual bank deposits for the first time. This development was reported by RBC, which described new steps by the state to tax interest accrued on savings held in banks. According to the publication, the Federal Tax Service (FTS) will collect taxes from citizens whose interest income from deposits surpasses a defined threshold. This change is framed as a targeted measure rather than a broad overhaul of the tax system, focusing on those who benefited most from deposit yields in the previous year. (RBC)
The material notes that the innovation is aimed at a specific segment of the population—people who placed money into bank deposits and accounts during the prior year. In practical terms, it means that savers who did not generate sufficient interest income, or whose deposits carried very low returns, may not encounter this tax. The FTS clarified that income from deposits with a return below 1 percent will not be taxed under this plan. Additionally, deposits inherited by clients are treated differently within this framework, and inheritances may be exempt or subject to separate considerations, depending on the exact rules that apply to inherited funds. (RBC)
Earlier reports suggested that the new taxation regime would take effect in 2024, and include adjustments to how related taxes are calculated. The same coverage indicated that the change would interplay with other fiscal measures, such as property taxes in Russia, which previously saw adjustments in how their values were determined. For instance, hypothetical changes to land tax calculations could be tied to cadastral values from a past year, reflecting the government’s broader approach to aligning tax bases with historical valuations. (RBC)
Observers and legal experts weighed in on the potential consequences, including Blinovskaya, who discussed the likelihood of appeals if taxpayers believed they were charged in error or if the thresholds did not apply as expected. The discussion highlighted that any new tax on deposit income would need to be carefully calibrated to avoid undue burden on ordinary savers and to ensure clarity in how thresholds are calculated and reported. (RBC)
In summarizing the situation, many financial commentators noted that the 2024 timing followed a year of policy announcements and administrative planning. The shift represents a move to broaden the tax base by bringing passive income, once considered a relatively quiet corner of personal finance, into the spectrum of taxable income. The practical implications for individual bank clients include the need to track annual interest receipts, understand which deposits qualify for tax and which do not, and prepare for possible adjustments in tax withholding or reporting on annual returns. Financial institutions, for their part, were expected to cooperate with the FTS by providing accurate interest statements and ensuring that reporting aligns with new thresholds and exemptions. (RBC)
Summary: the 2024 reform in Russia marks a notable change in how interest from bank deposits is taxed. It is designed to capture taxpayers with higher interest earnings while offering exemptions for the smallest yields and for assets received through inheritance. As more detailed guidance surfaces, savers are encouraged to review their deposit portfolios, understand the threshold under which interest remains non-taxable, and monitor official updates from the Federal Tax Service for precise calculations and reporting requirements. (RBC)