Sberbank Introduces IIS-3: A New Type of Individual Investment Account
Beginning January 1, 2024, clients of Sberbank can open a new IIS-3 type of individual investment account if they do not hold a valid old-style IIS. The bank confirmed this update through its press service.
During the first three weeks of the year, Sberbank reported that 11.8 thousand IIS-3 accounts were opened. By comparison, the same period in 2022 saw 12.3 thousand openings, and 14.7 thousand openings occurred in 2023.
Aisha Kubezova, Director of Sberbank Electronic Markets, noted strong demand for IIS-3, explaining that the new account combines the benefits of the two previous IIS types.
In remarks about future tax changes, it was stated that should amendments to the Tax Code pass, IIS-3 could enable investors to receive both deductions on contributions and income from investments simultaneously. This potential shift may bolster interest in IIS-3 and prompt some investors to convert their existing IIS accounts to the new format. (Source: Sberbank press service)
Sberbank describes IIS-3 as a vehicle for supporting long-term investments in the Russian economy. It retains the tax advantages of IIS-1 and IIS-2, known respectively as the A-type and B-type deductions. After opening an IIS-3, investors are entitled to an annual tax deduction on contributions up to 400 thousand rubles and on investment income generated within IIS-3 after a specified minimum validity period, with a maximum deduction limit of 30 million rubles across all IIS accounts. (Source: Sberbank press service)
The bank clarified that opening a new IIS is no longer possible with the old IIS type, though existing old-type accounts remain valid. Investors planning to adopt IIS-3 should either close the old IIS or convert it to the new format. It is possible to hold up to three IIS-3 accounts opened with one or more professional participants in the securities market. The total tax refund across all IIS accounts is limited by the stated maximum. (Source: Sberbank press service)
Transfer from the old IIS to IIS-3 occurs only at the investor’s request. The history of ownership for the old IIS is considered during the transfer, but cannot count more than three years. Consequently, if an investor has held an old-style IIS for two years, two years are counted; if five years, up to three years are counted. (Source: Sberbank press service)