Taxation of income on deposits deposits
Posted on Oct 15, 2000 08:15:27 AM
In accordance with Clause 2, Art. 224 of the Tax Code of the Russian Federation proceeds on bank deposits in excess of the amount calculated based on the current refinancing rate of Central Bank of Russian Federation during the period for which accrued interest on ruble deposits (except for urgent pension contributions made for a period of not less than six months) and 9% per annum on deposits in foreign currencies are subject to withholding tax at the rate of 35%.
The procedure of taxation on personal income interest income received by individuals on bank deposits is governed by Chapter 23, “Income tax on individuals” of the Tax Code.
Current tax law provides that a tax on personal income taxed is not the entire amount of interest income on bank deposits, but only the positive difference between the amount of interest income on deposit, accrued under the terms of agreement between the Bank and individual bank deposit agreement and the amount of interest Income not subject to taxation in accordance with paragraph 27 of article. 217 of the Tax Code. This procedure provides for taxation on interest earned by citizens on deposits in banks that are on the territory of the Russian Federation.
In accordance with paragraph 27 of article. 217 of the Tax Code are not taxable taxpayers received on bank deposits in the territory of the Russian Federation, the interest income:
– At ruble deposits (except for urgent pension contributions made before 1 January 2001 for a period of not less than six months) in the range of amounts calculated on the basis of three-fourths of the Bank of Russia refinancing rate in effect for the period for which such interest accrued;
– The rent does not exceed 9 percent per annum on deposits in foreign currency (in the red. FZ 22.05.2003g. № 55-FZ).
When calculating the taxable income used the refinancing rate, acting within the period for which accrued interest. Consequently, when it changes and varies the amount of interest income is not taxable.
Bank, payable to an individual – the investor interest on the deposit, a tax agent. Therefore, if the amount of accrued interest income on bank deposits of physical persons exceeds the amount of interest income not subject to taxation in accordance with paragraph 27 of article. 217 of the Tax Code, the bank must calculate, withhold from the taxpayer and pay tax on the excess amount.
In this case, individuals – investors do not have the right to determine their taxable income and pay off his income tax on individuals. In this regard, individuals who receive interest on deposits in banks are not obliged to submit to the tax authorities for a residence tax returns.
bank, contribution, income, interest, interest rate, taxes, the person,- Taxation of dividends from investments
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