Russians who received income from bank deposits in 2023 will need to pay tax for the first time. Izvestia tells what these changes are connected with and how to calculate the amount of personal income tax according to the new rules.
When did the tax on deposits of individuals appear?
The law on taxation of interest on bank deposits came into force on January 1, 2021. According to it, citizens whose interest income on deposits for the year exceeded a certain limit must pay income tax. Amendments were made to the second part of the Tax Code.
However, at the end of March 2022, Russian President Vladimir Putin signed a new law that temporarily allowed Russians not to pay income tax on deposits. This was one of the anti-crisis measures to support the population under sanctions. As a result, citizens were temporarily relieved of the obligation to pay personal income tax on interest income received on bank deposits in 2021 and 2022.
Thus, those who placed or only plan to place funds in bank deposits in 2023 should take these changes into account, as they do not plan to extend the moratorium on tax collection.
What income from deposits of individuals is taxed in 2023
To calculate the tax base, income from deposits, bonds, securities, as well as savings and card accounts is taken into account. That is, all products for which a citizen receives income in the form of interest. Moreover, income from both ruble and foreign currency deposits will be taken into account. In the latter case, the income will be converted into rubles at the exchange rate that was in effect on the date of interest payment.
As Dmitry Amirov, head of the PSB Center for Savings and Transaction Products, explained to Izvestia, when calculating the tax, it is not the amount of deposits that is taken into account, but the amount of total income received on all deposits and accounts. So, a client can keep less than 1 million rubles in a bank, but he still has to pay personal income tax on interest.
Moreover, if the semi-annual deposit was opened in mid-2022 and ends in early January 2023, then the client will have to pay tax on it, the expert added.
What is the tax rate on deposits of individuals in 2023
If the income exceeds the limit established by law, then the excess will have to pay tax at a rate of 13%. It is the same for both residents and non-residents.
When calculating the tax on income from the deposit, use the formula: (Your income on the deposit – Non-taxable amount) × 13%. It is also worth considering that the total income of more than 5 million rubles a year is taxed at an increased rate of 15%.
The tax-free amount is calculated according to the formula: Maximum key rate for the year × 1 million rubles.
In this case, the maximum value of the key rate will be determined from the values in force at the beginning of each month of the corresponding calendar year. Thus, if during the year the rate increased, and after that the rates on deposits increased, then the tax-free income will also increase. Accordingly, there is less chance that you will have to pay tax.
So, for example, if the key rate does not grow in 2023 and its maximum value is 7.5%, then the non-taxable amount of income will be 75 thousand rubles. If the rate is raised, then the tax-free amount will increase accordingly.
How to pay tax on deposits of individuals in 2023
The tax authority will calculate the amount to be paid on the basis of annual information from banks and send a notification about this before December 1, 2024.
Payment can be made in any convenient way: in the personal account of the taxpayer or bank, as well as through payment terminals.
In the event of non-payment, interest and penalties may apply.
When you can not pay tax on deposits of individuals in 2023
It is possible not to pay income on deposits if the interest rate on them is not more than 1% per annum or if a citizen has become the owner of a bank deposit due to inheritance.
Another exception is income from escrow accounts. This is a special bank account that is used in transactions to reduce risks, for example, when buying and selling real estate. One party deposits money into the account, after which they are frozen. The second party will be able to receive them when it fulfills its obligations to the first.
Are there any tax incentives for deposits of individuals in 2023
There are no special conditions for the payment of tax. Including they are not for pensioners, people with disabilities and other categories of citizens who are entitled to other tax deductions.
With regard to the tax on deposits, they pay it on a general basis, on an equal basis with other taxpayers.
Earlier, Izvestia wrote that a bill had been prepared in Russia that would exempt citizens with small deposits from paying tax. However, it was rejected by the government. It was noted that this measure will lead to shortfalls in federal budget revenues in 2024 in the amount of 101.6 billion rubles.
Read also – what will be the tax on deposits at the end of 2023.
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