Russians explained procedure for paying tax on deposits

In Ministry of Finance explained to Russians the procedure for paying tax on income on deposits over one million rubles. Nation News writes about it.

They explained that not the bank deposits themselves will be taxed, but only interest on them. The department noted that when placing large amounts on deposits with monthly interest payments, Russians can avoid paying taxes or reduce them if the income from the deposit is distributed over two or three tax periods.

The Ministry of Finance indicated that when interest is credited to a bank account to replenish a deposit, income will be taken into account when taxing personal income in the tax period in which interest was charged.

Since January 1, Russia began to operate a law on taxation of interest on deposits individuals over one million rubles. Tax collection on income received in 2021 will begin in 2022. Interest on salary accounts will not be taxed. At the same time, citizens are not obliged to declare this income, since the tax will be calculated automatically: based on information about the amount of interest paid to the citizen.