Taxation of deposits of individuals. Taxation of interest on bank deposits

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Bank deposits are considered one of the most common ways for citizens to accumulate and save money. Deposits allow you to save and increase your money. However, in accordance with the current legislation, it is necessary to make deductions to the budget from each profit. Not all citizens know how the taxation of bank deposits of individuals is carried out. Meanwhile, information about this acts as the basis for making the right decision on placing your funds in accounts with a financial institution. Let us consider further the taxation of bank deposits of individuals.

General information

Storage of funds on deposits in banks refers to passive investment. One of the advantages of these operations is the minimum of actions of the owner of finance in relation to his capital. This applies equally to the taxation of deposits of legal entities and individuals. The financial institution independently makes all the necessary deductions.

Relevance of the issue

When choosing a bank deposit, the owner of funds, as a rule, calculates the expected income. At the same time, it relies on the amount, terms and rate of the deposit. In this case, taxation of income on deposits is usually not taken into account. This is due to the fact that many citizens do not even think that this profit may fall under the provisions of the Tax Code. This state of affairs is quite understandable. First, as mentioned above, the taxation of deposits is entrusted to financial institutions, and usually the owner of the funds is the last to know about the collection of a certain amount. In addition, not every deposit is subject to the NC requirement.

Hold Features

In accordance with the current legislation, taxation of cash deposits applies to deposits opened by citizens - residents of the country. Withholding is also carried out from the accounts of non-residents, if the sources of their income are related to activities in the Russian Federation. In accordance with different categories, certain rates are set, as well as the principles by which they are deducted.

The procedure for collecting personal income tax

Taxation of deposits of individuals is carried out according to the established scheme. Charged from accounts:

1. In national currency. Deposits are taxed if their rate is higher than the refinancing rate of the Central Bank of the Russian Federation (more than 8.25% at present) plus 5%.
2. In foreign currency. Deductions are made if the rate is above 9%.

The base is the difference between the actual profit from the deposit and the amount received at the threshold rate. The basis of the calculated income is the nominal, not the effective tariff. This means that there is no difference in the scheme between deposits with capitalization and ordinary deposits.

Important moment

In case of conclusion of a contract for a period of less than three years, only the rate that is valid on the date of registration (continuation) of the account will matter. The mandatory deduction is collected at the time of interest payment. The financial institution conducts strict reporting. All interest income of individuals is taken into account, along with this, tax is transferred on their income. The control of these operations is entrusted to the relevant authorities: the Central Bank, the Federal Tax Service, audit organizations. The amounts of deductions must be reflected in the declaration drawn up in the form of 3-NDFL. It is required when receiving tax deductions and other things.

Finance Company Operations

Taxation of deposits of individuals can be carried out every month or at the end of the established period (in accordance with the concluded agreement). For residents deductions - 35%, for non-residents - 30%. The financial company performs the calculation, deduction and deduction of the mandatory payment to the budget. In some cases, organizations provide customers with special calculators. With their help, owners of funds can calculate their profits, as well as the taxes that they are required to pay on income. For each client who makes a profit frominvestment, the financial company draws up a certificate. It indicates the tax base and the amount of deduction. The amount of capital placed on the deposit is not included in the certificate. Such a document is issued by a financial company at the written request of the client.

Special occasions

Citizens can place their funds on the accounts of financial institutions located abroad. In this case, it should be determined whether there is an agreement between the country in which this bank is located and Russia, which allows to exclude repeated withholding from profits. If there is such an agreement, the client can choose the country to whose budget he will make mandatory contributions. If the owners of the funds do not indicate this, then the taxation of bank deposits is carried out in accordance with the legislation of the state in which the financial institution is located. However, subsequently, clients can claim the return of the funds paid in order to transfer them to the budget of the Russian Federation. If the above agreement is absent, then often the taxation of deposits in foreign financial institutions is carried out twice.

Probable difficulties

Taxation of bank deposits may be difficult if during the period in which the agreement is in force, there have been changes in the base of mandatory contributions. This situation may be due to several factors:

1. Changing the size of the deposit due to its capitalization or the possibility of replenishment.
2. Gradation of rates atadjusting the amount on the account (if allowed by the terms of the agreement with the financial institution).
3. Changing the size of the refinancing rate of the Central Bank.

In such cases, the taxation of deposits (or its termination) begins immediately from the moment the value of the corresponding rate is adjusted. The amount of deductions, in turn, changes when the base changes. In case of early termination of the deposit agreement and transfer of funds to the category "on demand" with a reduced interest rate, the withholding of the tax payment is terminated. Funds sent to the budget can be returned at the request of the client and transferred to his current account.

Specific deductions from corporate profits

It should be taken into account that the taxation of organizations' deposits is carried out differently than for deposits of citizens. The profit that enterprises receive when investing in the accounts of a financial institution is classified as proceeds from non-operating transactions, depending on which deduction regime is provided for the company: simplified or general.

Taxation of interest on deposits

The simplest are the cases of payments without capitalization at the end of the contract period. However, term deposits are often issued with the condition of paying interest on a quarterly or monthly basis. In these cases, the financial institution withholds personal income tax according to this schedule. Thus, the taxation of interest on deposits is carried out with the sameperiodicity, as well as their calculation. It is somewhat more difficult to withhold personal income tax during capitalization (using compound interest) or with the possibility of replenishing a deposit.

In such cases:

• When the size of the deposit increases, the size of the taxable base and the amount of mandatory deductions to the budget change each time.
• If a gradation of rates is provided in accordance with the amount of funds in the account, a certain rule applies. It consists in the fact that if on the date of registration the tariff was lower than the refinancing rate plus 10 percentage points for deposits in the national currency or less than 9% for foreign currency savings, no deductions to the budget are made. If the client replenished the account or interest was added to the amount, and the rate, rising, became equal to the value after which the profit is subject to taxation, the banking company is obliged to withhold personal income tax for the time from which the increased rate began to operate.

Deposit termination

In case of early termination of the agreement and recalculation of the rate at reduced rates (as a rule, for demand deposits it is not higher than 1%), even if interest income was previously provided for, personal income tax will not be charged. If on the date of termination of the deposit agreement it has already been deducted, the client can return it upon his written application. When taxing interest, it is also necessary to take into account changes to which the refinancing rate of the Central Bank is subjected (both downward and upward). Collection of personal income tax or termination of its deductionfrom the date of the official tariff adjustment. In addition, you should remember about deposits in precious metals. In this case, all profits are subject to taxation, however, the personal income tax rate for such deposits is 13%.

Conclusion

Taxation of deposits should not be considered a negative aspect of the financial activity of an individual. It should not affect the choice of the organization in which the account will be opened. As practice shows, although taxation reduces the potential amount of income for individuals, the deposit remains today one of the most attractive and reliable investment methods.