Tax on deposits of individuals: calculation procedure, interest

Most of the depositors do not think about the tax on deposits of individuals. Having opened the deposit, the client expects to receive the amount calculated by him based on the term, interest rate of the deposit. And often it is a surprise for him that you have to pay taxes on profits.

About the obligation to pay know not all

When opening a deposit, investors for the most part do not suspect that it will be necessary to pay taxes on the profits received (interest from the deposit). This is due to several reasons:

• Banking institutions themselves report on the income received by the investor, pay taxes. The main job of the bank's employees is to attract customers, so they very rarely mention this to ordinary investors. As a result, the depositor learns about the need to pay tax on income on deposits only when it is closed and interest is received.
• Most of the funds placed by individuals are not subject to taxation.

It is important to understand that all revenues that are received in this country are taxable. The income from deposits in the form of accrued interest is also the profit received by the depositor. This is a payment for the possibility of receiving income, which is provided by the state.

Tax deductions are an honorable duty of a citizen. Nevertheless, most investors do not know that interest on deposits, like passive income, is taxed.

What the law says

The duty to pay income tax on deposits arises in several cases:

• If a deposit in rubles is opened and the interest rate on it is 5% higher than the refinancing rate (from 2016 this rate is equal to the key one, which is 11%);
• When opening a deposit in a currency, the need to pay tax on deposits of individuals will appear if the rate on it exceeds 9% per annum.

Effect of timing

If the deposit period is not more than three years, the rate that is specified in the conclusion of the deposit contract participates in the calculation. And some banks offer floating interest rates, which increase when certain conditions are met.

It is important to know that the tax on a bank deposit must be paid when paying interest accrued, and not at the end of the term of the deposit. That is, if the conditions of the deposit provide for the payment of accrued interest each month, the tax will also be transferred to the budget every 30/31 day.

The Bank in the vast majority of cases is a tax agent and itself calculates and transfers to the depositor the taxes on the deposit. In addition, he independently submits tax returns for you (a declaration of income). Therefore, the bank can ask for a certificate of 3-NDFL, which in the future will come in handy for obtaining tax deductions.

What is good, to save the secrecy of the deposit, its size is not indicated in the certificate. It only specifies the amount of interest paid, which was involved in the calculation of taxes, and the payments themselves.

What options can there be?

The simplest contribution implies the accrual and payment of interest at the end of the term of the deposit at the rate specified in the contract. Here, the tax on income on deposits will be calculated and paid at the end of the deposit period.

Let us give an example. The client placed a deposit of 500 thousand rubles for six months. The rate for the deposit is 21% per annum. The deposit is simple, without capitalization, without the possibility of contributions, payment of interest at the end of the term. Calculate the amount of tax.

Determine, from what rate will the tax be calculated:

• 21 - (11 + 5) = 5%.
• (500 000 x 5 x 181: 365: 100) x 35% = 4339 rubles.

This amount will be deducted from the amount of income that the depositor will receive at the end of the term.

Please note that the calculation is made according to the new rules. Rather, the old, which from the beginning of 2016 again began to act. In 2014, a law was adopted that established a new level of income on deposits that was not taxed. He assumed an increase in the level of the refinancing rate by 10 pp. Instead of 5 pp. That is, the tax on deposits was paid only when exceeding 18.25% per annum.

This law was in effect from the end of 2014 until December 31, 2015.

The tax on deposits in banks in foreign currency is calculated at the rate applicable at the date of payment of accrued interest.

The interest rate can vary during the term of the deposit. Then the tax will not be levied only if the rate was not higher than 16% (11 + 5), if the contribution is in the ruble equivalent, or 9% in the case of a foreign currency deposit.

It is a little more difficult to calculate the tax on deposits of individuals, if it provides for capitalization. There are also possible betting options, which depend on the amount. In addition, each period will have its own base for calculating the tax, because the amount of the deposit will be calculated as interest.

If the deposit is terminated early

The deposit agreement provides for early termination, at which the interest rate is recalculated towards its reduction, and very tangible. Then the credit institution recalculates the amount of interest for the entire term of the deposit.

In this connection, the income that is subject to taxation is lost. And there is a need to return the accrued and paid amount of personal income tax. Art. 231 of the Tax Code indicates that the taxpayer can return the amount of tax that has been overpaid by applying to the tax office at the place of residence with a written application.

What is important to know and understand

If the deposit is issued for a period of up to three years, you can not follow the refinancing rate (that is, the key rate) of the CBR. It is important only at the time of signing the deposit contract. If all the conditions are met, you will not have to pay a tax on deposits in banks. The exception here is the growth of the deposit rate itself: if you exceed the threshold values, you will have to pay tax to the treasury.

If the depositor draws up a deposit in precious metals, all income received by the depositor will be taxed. However, the calculation will be carried out at a rate of 13%.

Deposits in the Savings Bank

One of the most popular banks in the country also offers a wide range of deposits. All of them have their own peculiarities:

• Duration of the contribution. There are term deposits of three months. There are long to three years.
• The amount of the deposit.
• Deposit currency (for today it is possible to make a deposit in three currencies: ruble, euro or US dollar).
• Capitalization. The interest rate depends on whether there is capitalization or not.
• Possibility of replenishment.
• Possibility to manage the deposit yourself.

Savings depositors have the opportunity to open a deposit in precious metals that have such advantages:

• Income is determined by the cost of these metals in the market;
• No fee to open and maintain an account;
• No need to pay VAT;
• The speed of service is about 10 minutes.

The most optimal option for today is a savings certificate, the rate for which is 11.5% per annum. However, it is not subject to compulsory insurance.

Another product worth looking at is Save, which has 9.07%. You can open up to three years, does not provide for replenishment.

We draw a conclusion: there is no need to pay taxes on deposits in Sberbank. The rates on them do not exceed allowable limits. However, do not forget that this does not apply to deposits with precious metals: it pays for all income.

What's in Ukraine?

Not so long ago in Ukraine introduced a single tax on deposits, which abolished the previous one, which was progressive.

Now the tax on deposits in Ukraine is 15%, and it is paid by all investors regardless of anything. Earlier the rate was progressive, and the tax was paid if the amount of deposits exceeded UAH 20,000. With the growth of the amount, the rate also increased (from the income of the deposit over 1 million hryvnia it was necessary to pay 25%).

Most likely, this is done in order to prevent the fragmentation of the amount of savings into small parts for evading payment.

The tax agent, as in the Russian Federation, is the bank. He independently calculates the amount of tax from the depositor's deposit, makes the necessary transfers to the treasury. These actions are performed by the bank at the moment of accrual and payment of interest. To maintain the secrecy of deposits, the institution does not indicate in the tax declaration the data of the depositor, the amount of the deposit, accrued interest.

Note that these innovations will not affect card and current accounts, salary projects.

Draw conclusions

Let us formulate the main conclusions mentioned earlier:

• The interest on deposits is established by the credit institution and is prescribed in the contract. The investor himself chooses a bet based on his desires, possibilities and offers on deposits.

• The Central Bank of the Russian Federation determines the refinancing rate. It determines the interest rate at which it lends to commercial banks. It also helps to influence inflation.
• The tax on deposits of individuals is established by the state. In the Tax Code, the calculation procedure is prescribed. The amount of tax for residents of the country is calculated on the basis of 35%, non-residents (citizens of another country) pay 30%.

Taxes do not include deposits that, at the time of signing or prolonging the contract, interest rates did not exceed the CBR refinancing rate + five percentage points. However, there is a reservation that during the period of the calculation of profit the amount of interest on the deposit did not increase. And if from the date when the rate on the deposit became higher than the refinancing rate, increased by 5 pp, a maximum of three years passed.