An increase in the key rate of the Bank of Russia from 15% to 16% will not affect the tax on income from deposits, which Russian citizens will have to pay at the end of this year. This is due to the fact that the tax-free limit is calculated as one million rubles multiplied by the maximum value of the key rate on the first day of each month in the reporting year, reported “News”.
According to Freedom Finance Global leading analyst Natalya Milchakova, as of December 1, 2023, the key rate was 15%, so the amount of non-taxable income will be 150 thousand rubles. Persons whose income from deposits exceeds this figure will have to pay the appropriate tax.
“The average market rate on deposits and interest-bearing savings accounts in 2023 was, according to our estimate, 11% per annum. Thus, those citizens who at the end of the year had a total of at least 1.3 million in banks are subject to taxation.”,” the analyst explained.
According to the Deposit Insurance Agency, the average size of deposits of individuals in Russia in January-September of this year was 316 thousand rubles, and only 3.5% of citizens had deposits worth more than one million rubles.
The tax on income from deposits corresponds to the standard personal income tax rate of 13%, and if income exceeds 5 million rubles, the tax is 15%.
