Type B EIS: if there is no official income
Type B IIS and personal income tax
IIA or individual investment account - is a brokerage account with some nice tax benefits, which are now becoming rarer and rarer. IIS allows you to refund previously paid personal income tax (PIT).
You pay personal income tax in the amount of 13% at work: when you receive your wages, you do not receive the full amount on your card, but less this tax. We also pay personal income tax in many other cases, for example, from the sale of property, and from next year we will pay it also from the profit on bank deposits. Therefore, it is a good opportunity to return a part of the tax paid to the treasury. This is a privilege of IIS type A.
But there is a variant when a person has no income on which he pays personal income tax. This is a significant part of the population of our country - pensioners, students, individual entrepreneurs, and even if you have a job, you don't always get your salary completely "clean", nobody has canceled envelopes. As you understand, they have nothing to return on the investment account. What should you do if you want to invest?
For these investors, there are IIS type Bwhich exempts the holder from not having to pay 13% personal income tax on profits earned on the stock market.
How does it work? For an individual investment account type B, as well as for A, there is a time limit during which you cannot withdraw money, otherwise it will be closed. This period is 3 years. Everything seems to be the same here. There is a significant difference only in the amount of investment: if for IIS type A it is 400 thousand rubles, then for type B you will need 1 million rubles per year, which is significant.
Nevertheless, the fact that now, when they are trying to tax absolutely everything, we still have the opportunity to write off or not pay something is unique. If you already have a brokerage account and you continue to pay capital gains taxIf you think about it, it may be more profitable for you to switch to one of the two types of IIS. Now you know which one suits you best.