January 2019
The basic principle of the state taxation system is the transfer of funds to the country's federal funds. A certain percentage is taken from each type of income, regulated by regulatory legal acts. This value is called the tax levy. It is a share of the income that investors receive from the monetary assets invested in a financial institution. What is the principle and procedure for calculating tax on deposits of individuals - more details in this article.
Are individual deposits subject to tax?
The population's investments in deposit investments decreased slightly compared to previous years. However, there is an increase in those wishing to invest free funds in other investment options - shares, bonds and valuable assets. The rates for them are higher, and the list of programs is huge. Despite the tough position of the Ministry of Finance of the Russian Federation, which insists on the need to introduce a general tax on bank deposits, in the current calendar period the Government has not adopted any significant changes in this regard. All indicators and rates are frozen at last year's indicators.
So is it necessary to pay tax on the deposit, and if so, in what specific cases? If the maximum income from investment is above the established limit (and it is currently 13.25%), then a certain percentage will have to be paid to the state treasury. If the income is below the stated level, all profits will go to the investor.
If you believe the expert assessments of specialists in the field of economics and finance, then practically no domestic bank is ready today to offer its clients a rate capable of breaking the 9% mark. There are objective reasons for this. And an increase in this indicator even by a couple of points is fraught with increased transfers to the DIA. It turns out that it is almost impossible to make a profit greater than the indicated 13.25% at the base bank rate. Consequently, such income will not be subject to interest budget deductions.
Tax on deposits of legal entities
Deposits subject to taxation, in relation to legal entities, are directly dependent on the taxation system according to which the payer carries out its main activity. The total tax will be calculated on profits that exceed the key rate plus 5%. At the moment this figure is 16%. The remaining share of income is non-taxable. The following fees will apply:
- With OSN - if the funds first go to a deposit account and are then redirected back, but taking into account interest, no tax is charged. In other cases, VAT of 20% is charged on all income.
- Simplified taxation system - profit resulting from the sale of goods or services is subject to taxation. Nothing is withheld when interest is capitalized. The base rate is 6%.
- UTII - when working under a single tax, the rate is equivalent to 15%, while the agent is not a financial institution, but directly an organization registered as a legal entity, therefore, it will pay all mandatory fees.
What deposits are taxable?
Formally, any deposits of citizens will be taxed if the deposit brings economic profit to its owner. This applies equally to funds invested in the Russian ruble and in the currencies of other countries. The very moment of transferring the fee is not tied to the time parameters of placing money, as well as to the following banking operations:
- automatic extension of contractual obligations upon mutual agreement of the parties to the transaction;
- partial withdrawal of funds;
- replenishment of the deposit.
The personal income tax calculation procedure is influenced by:
- The amount of monetary assets invested in the bank.
- The interest rate within the scope of a specific deposit product.
- The refinancing rate at a certain point in time. This value is established and controlled by the state - represented by the Central Bank.
- Profit from assets subject to taxation will be the amount by which the client’s savings increase as a result of interest received.
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How is income tax calculated?
- all types of income are summed up;
- the amount of deductions is determined;
- the entire deduction is subtracted from the total profit;
- the tax rate is determined - personal income tax is 13%;
- this amount is withdrawn from income and transferred to the state budget of the country.
When performing mathematical calculations, the formula is used:
Personal income tax = (D - V) × C, where:
- D - income of an individual;
- B - required deductions;
- C - the size of the base rate applied to a specific category of income tax payers.
Note! What deductions may be depends on the specific situation. They may contain a standard set of deductions, or they may be tied to a person’s life circumstances. For example, the number of minor children dependent on a given person, or the acquisition of real estate by him. Interest rates may vary depending on a number of factors. The regulatory document regulating the process of calculating income tax is the current Tax Code of the country. It also determines the extent of responsibility for improper taxation of individuals and legal entities.
Taxes on other investments
Tax on foreign currency deposits or ruble deposits are not the only income items from which interest can be deducted. For example, the presence of a share. It is worth noting that the rate in this case will be slightly higher than with standard investing.
In a situation with share participation, only a certain share of profitable income is declared - that which exceeds the regulated tax minimum. Deductions need to be made only from the difference obtained by deducting the basic limit adopted by the Central Bank of the Russian Federation from the real income indicator. There is also a link to a fixed tax rate: for persons who are residents of the country - 35%, for foreign citizens - 30%.
The next type of investment is valuable bonds. For individuals, the tax on interest on deposits has undergone a number of changes this year. Now the base value when calculating the amount of tax liabilities is the entire total income. The exception is bonds purchased in the currencies of other countries. This category of valuable loans is not subject to mandatory taxation.
Video on the topic
No state in the world can function without a treasury. Its replenishment comes from various sources. One of them is the income tax of legal entities and individuals. The Russian Federation is no exception, where taxes make up the bulk of the budget. In their structure, the tax on bank deposits of individuals occupies a modest last place.
Is profit from deposits of individuals taxed?
Many depositors are not even aware of the existence of a tax on deposits of individuals, and if they do know, they take it literally, as it sounds. However, the Tax Code of the Russian Federation contains completely different formulations. To understand what the taxation of deposits of individuals is in 2020, it is necessary to clarify the concepts and definitions used in the Tax Code of the Russian Federation and in the formulations used in everyday life and in information materials devoted to the taxation of deposits of individuals:
- bank deposit;
- deposit;
- income;
- profit.
1. Bank deposit is a sum of money transferred by an individual to a financial organization in order to earn a profit in the form of interest. The bank, in turn, issues these funds to third parties, citizens or organizations, as loans, also at interest. For example, the deposit was made at 9.8% per annum. A loan for the deposit amount was issued at 12.3%. Of this, the depositor will receive 9.8%, and 2.5% will remain for the bank as profit (12.3%-9.8%).
2. A deposit is also a bank deposit, but in a broader sense. This:
- cash deposit in various currencies;
- securities (shares, bonds, certificates, etc.);
- precious metals: platinum, gold, silver, as well as coins.
Such clarification is necessary due to the fact that there is a different system for calculating tax payments for deposits in precious metals.
3. Income is the totality of funds received by a legal or private entity as a result of any activity over a certain period of time. In world practice, income is most often taxed in only three cases:
- wages - income tax;
- inheritance;
- sale of real estate (house, cottage, apartment, etc.).
4. Profit is the difference between income and the costs of obtaining it. If we have an excess of costs over income, then we receive losses. In the case of deposits, profit comes from interest on ruble or foreign currency deposits.
Based on the above definitions, it can be argued that the concepts of “deposit tax” and “deposit tax” are just a tax on interest on deposits of individuals, because they, in essence, are the profit of its holder.
Which deposits are taxable?
In accordance with the Tax Code of the Russian Federation, tax is imposed on interest on deposits:
- in rubles;
- any foreign currency;
- precious metals and coins.
Deposit tax rate
In accordance with Art. 225 of the Tax Code of the Russian Federation, taxation of deposits of individuals is carried out at the following rates:
- 35% - for residents of the Russian Federation;
- 30% - for non-residents of the state.
For owners of deposits with precious metals, regardless of their status, tax on income on deposits is charged on the entire amount of profit in the amount of 13%.
For reference:
- resident is a company, organization, enterprise or individual registered in a country and fully complying with its legislation;
- non-resident - citizens or legal entities working in a particular state on a permanent or temporary basis, but registered or residing in another country and subject to its laws.
Important: citizens of the Russian Federation who are outside the country for work (civil servants, military), for treatment, training, etc. more than six months (allowed intermittently), with documents confirming departure, are considered non-residents and are taxed at a rate of 30%.
A differentiated approach to tax rates on income from deposits is dictated by the desire of the legislator to attract foreign currency deposits to the country.
What percentage of the deposit is the tax payment calculated on?
On what deposit amount is the tax payment due? Tax is paid on interest on deposits. The following are accepted as the basis for taxation:
- for deposits in rubles - an excess of the key rate (since 2014 it has been equal to the refinancing rate) by 5 points, i.e. on interest on deposits exceeding the refinancing rate and an additional 5% tax must be paid;
- for deposits in foreign currency - exceeding the minimum threshold by 9%;
- for a deposit in precious metals - the entire amount of profit, i.e. all income from a bank deposit is taxable, and not just the excess of the key rate by a certain amount, as with cash deposits.
The refinancing rate is a dynamic financial instrument for regulating the country's economy. Depends on the inflation rate. Determines the interest rate on loans from the Central Bank of the country for state and commercial banks operating in the territory of the state.
For reference: at the beginning of 2020, the interest rate on deposits of up to 12.5% (7.5% refinancing rate + 5%) is tax-free. Anything more than this figure is subject to tax.
As can be seen from the Tax Code of the Russian Federation, the presence or absence of a tax levy on interest on deposits is determined by:
- the amount of the annual deposit rate established by the bank when concluding the deposit agreement;
- the size of the key rate.
Do not affect the amount of payment and its presence or absence:
- Deposit amount. Regardless of 100 rub. on the account or 10.0 million, tax is calculated on the amount of profit received from exceeding the interest rate. Even if it ultimately turns out that 1 kopeck is due, the tax must be paid.
- The period of storage of funds in the bank - whether the money is deposited for a month or a year - a tax fee will be charged if there are grounds for it;
- The presence in the contract of a clause on its extension;
- Multiple operations on a deposit account, including both replenishment of funds and their withdrawal;
- Whether income from deposits is capitalized or not.
Tax payment mechanism
The taxpayer is the owner of a bank deposit or deposit with precious metals. However, to simplify all procedures, when withdrawing funds from a deposit or terminating the contract, the state obliged banks to calculate the amount of tax and transfer it to the budget.
In this case, the financial organization, i.e., in this case, the bank, is responsible for all errors made in calculating and transferring the tax payment. If it later turns out that a tax levy has not been charged on a specific deposit, the bank will pay it from its own funds, as well as fines and penalties.
Thus, the investor does not need to visit the tax authorities and fill out a declaration. The debtor, the bank, does this for him.
How is tax calculated?
The tax on ruble deposits is calculated using the formula:
S=P*t/100, Where
- S—amount of tax payment;
- P - taxable profit;
- t — tax rate (30% for non-residents, 35% for residents).
In turn, the amount of profit subject to tax is calculated as:
P=W*(N-K-5)/100/365*n, Where
- N—annual interest rate;
- K - refinancing rate;
- n is the deposit storage time, in days.
Let's look at a specific example. Initial data:
- deposit amount - 500,000 rubles;
- the contract was executed on March 1 for 3 months (92 days);
- annual deposit rate - 13.5%;
- refinancing rate - 8.4%;
- On April 1, the refinancing rate was reduced to 7.9%;
- the contribution was made by a resident of the Russian Federation.
We substitute specific numbers into the given formula:
P=500000x(13.5-7.9-5)/365/100x61=489.22
For reference: the number of days of keeping savings in an account (61) with a higher interest rate on the deposit is determined from the date of reduction in the refinancing rate (92 days - 31 days).
Thus, tax will have to be paid on the amount of 489 rubles. 22 kopecks The specific payment amount is 171 rubles. 23 kopecks (489.22*35/100).
By foreign currency deposits The tax amount is calculated using the formula:
S=W*(N-9)/100/365*n*t/100, Where
- S is the amount of tax;
- W is the amount of savings placed in the deposit account;
- N—deposit rate;
- n — deposit storage time, in days;
- t — tax rate (30% for non-residents, 35% for residents).
Let's give an example of calculation using a specific example:
- deposit amount - $5000;
- annual rate - 9.5%;
- shelf life - 90 days;
- the investor is a resident of the Russian Federation.
The depositor will need to pay $0.04 (3000*(9.5-9.0)/365/100*90*13/100).
Tax on deposits with precious metals calculated by the formula:
S=W*N/100/365*n*13/100, Where
- S is the amount of tax;
- W is the amount of savings placed in the deposit account;
- N is the annual interest rate on the deposit;
- n—storage time, in days.
Taxes on deposits of legal entities
Are bank deposits of legal entities subject to tax? Yes, like citizens, legal entities pay income tax on funds located in deposit accounts.
Ruble and foreign currency deposits of legal entities are subject to the same rules and regulations for calculating tax payments as for individuals. When storing precious metals on deposit, the tax payment rate is also set at 13%.
Conclusion
The interest rates applied in 2020 by banks of the Russian Federation on deposits in rubles and foreign currency are significantly lower than the established threshold for profit taxation. This means that depositors will not have to calculate and pay tax on profits received as a result of keeping their savings in bank accounts.
Tax is imposed on any income of a citizen of the Russian Federation received both in Russia and outside its borders, as well as on the income of a foreigner received within Russia and it is called personal income tax - personal income tax. By placing funds on a bank deposit, the owner of the deposit receives income and is obliged to pay tax on interest on deposits. Not every investor thinks about this responsibility.
As follows from Art. 214.2 of the Tax Code of the Russian Federation, income from interest from placing funds on deposits is subject to taxation when:
- placing a deposit in a currency where the interest rate is higher than 9% per annum;
- placing a deposit in rubles, where the interest rate is 5 percentage points higher than the refinancing rate of the Central Bank of the Russian Federation.
Refinancing rate of the Central Bank of the Russian Federation
From 09/14/2012 to 12/31/2015 it is 8.25%, from 01/1/2016 the refinancing rate is equal to the key rate of the Central Bank and until 06/13/2016 it was 11%, from 06/14/2016 the rate is 10.5%.
Tax rate on deposits
Provided that the income from the deposit is subject to taxation, the owner of the deposit pays personal income tax on part of the income, taking into account two different options:
- If the owner of the deposit is tax resident RF, the tax rate will be 35%.
- If the owner of the deposit is non-resident, the rate will be 30%.
Tax on interest on deposits in 2015
Law No. 462-FZ of December 29, 2014 exempted from personal income tax in 2015 income of citizens received from bank deposits with a rate less than the refinancing rate of the Central Bank of the Russian Federation (as noted above, this rate in 2015 was 8.25%) increased by 10 percent .
Consequently, on the basis of this Law, until December 31, 2015, deposits with an interest rate not exceeding 18.25% per annum were not subject to personal income tax.
Taxation of bank deposits in rubles in 2016
Taxation of income on deposits in 2016 is calculated as follows: ruble deposits with an annual interest rate of more than 15.5% will be taxed.
Consequently, the grace period of 2015 did not extend into 2016 and the tax will be levied on each deposit whose yield is at least 5% higher than the refinancing rate. From June 16, 2016, the refinancing rate is 10.5%.
However, the probability of finding conditions for a deposit with a rate of more than 15.5% per annum in 2016 is negligible.
Taxation of foreign currency deposits
Foreign currency deposits in Russia
To calculate personal income tax on deposits in foreign currency, it is necessary to recalculate income in rubles at the rate of the Central Bank of the Russian Federation established at the time of receipt of income in fact.
The situation with foreign currency deposits is much simpler with regard to deposits placed in banks within the Russian Federation. Income from foreign currency deposits is taxed at an annual rate exceeding 9%. But banks do not currently offer such conditions for placing funds.
Foreign currency deposits abroad
Who pays personal income tax on deposits?
It is not surprising that depositors often do not know about the taxation of deposits of individuals, do not know whether interest on a deposit is taxable, or whether they need to pay taxes on deposits, because Russian tax legislation shifts the functions of a tax agent to the bank. The bank independently withholds from the amount of deposit income tax on interest on deposits of individuals. But the owner of the deposit does not pay this tax on his own: he is given interest on the deposit minus the tax.
Deposit tax - to pay or not? With few exceptions, taxes must be paid on all income, and bank deposits are also subject to taxation. True, in practice it is very rare that a depositor must pay tax on a deposit. Let's figure out when you need to pay tax by opening a bank deposit.
Taxation of bank deposits is regulated by Article 214.2 of the Tax Code of the Russian Federation.
What is taxable
Personal income tax (NDFL) is not levied on the entire deposit, but only on the return on it, that is, the interest that the bank accrues and pays. Not the entire amount of interest is subject to personal income tax, but only the excess amount.
As it was before
For ruble deposits opened in banks located in Russia, the norm is the refinancing rate increased by 5 percentage points.
From September 14, 2012 to December 31, 2015, the refinancing rate was 8.25%, add 5 percentage points to it, and it turns out to be 13.25%. If the interest rate specified in the deposit agreement is more than 13.25%, then personal income tax had to be paid on this difference.
On interest accrued for the period from 12/15/2014 to 12/31/2015 the following restriction applies: income from the deposit is taxed only if the rate under the agreement exceeds the current refinancing rate increased by 10 points: 8.25 + 10 = 18.25. For such deposits, deposits with yield are taxed more than 18.25%.
Tax from 2016
From January 1, 2016, the refinancing rate is equal to the key rate; its independent value is no longer established.
The key rate from 08/03/2015 is 11%, which means that tax from the beginning of 2016 is paid on a yield exceeding 16% (11% + 5 percentage points).
From June 19, 2017, the key rate is 9%, add 5 points to it, it turns out 14%. Thus, income on ruble deposits is currently taxed if their nominal rate exceeds 14% per annum.
Another change was introduced to the Tax Code for ruble deposits (from November 23, 2015) - if at the time of concluding (extending) the bank deposit agreement, its profitability is lower than the refinancing rate + 5 percentage points, then the tax on the deposit is not credited. But provided that the interest rate on the deposit has not increased during the interest accrual period and from the moment the refinancing rate is exceeded + 5 percentage points. less than three years have passed.
By foreign currency deposits Personal income tax is paid if the interest rate is above 9%, on part of the excess.
How much will you have to pay
If you were able to open a deposit in a bank at a high interest rate and are subject to taxation, then you will have to pay not 13% - this is the standard personal income tax rate, but more, depending on whether you are tax resident or not.
A tax resident is considered to be a person who has spent more than 183 days in the Russian Federation, that is, he is an ordinary resident of Russia. Anyone who primarily lives abroad and has lived in the country for less than 183 days is considered a non-resident, no matter whether he has Russian citizenship or not.
If a Russian citizen traveled abroad for treatment or training for a period of less than six months, then these days are not counted when calculating his classification as a tax resident. Military personnel serving abroad, as well as employees of government bodies and local self-government bodies sent abroad, regardless of their time spent in Russia, are considered residents.
The tax resident pays the state 35% from income on bank deposits, and non-residents - 30%.
How to pay personal income tax and report
If you have opened bank deposits with high rates, then you don’t have to calculate and pay taxes yourself, and you don’t need to go to the tax office either. The bank is responsible for calculating, withholding and paying personal income tax for the depositor, and the bank will also report for you.
The bank will withhold the tax amount from the interest when it is actually paid, depending on the terms of the agreement: either on the last day of the deposit term, or the interest payment period can be daily, monthly, quarterly, semi-annually or annually.
Nina Polonskaya
