Instruction: taxes on investments in Russia
Taxes on investments in securities in Russia - is the most frequent question that arises among traders and investors. Everyone wants to be honest with the state, and at the same time use maximum opportunities to cut costs. Let's make a small simple instruction on how much, when and what we pay for when trading on the stock exchange.
The most important thing - investment income tax is as follows 13%. But there are still some important points.
Taxes on income from shares
Taxes on investments
Tax on purchase and sale of shares Is 13% if you made a profit in the tax period.
- For example, you bought shares for 10,000 roubles and sold them for 15,000 roubles. Your tax will amount to (15,000 - 10,000) * 13% = 650 roubles.
- If you sold the same shares for 8,000 roubles, i.e. you made a loss, you pay no tax.
- You also don't pay tax until you have locked in a profit, i.e. if the stock goes up in value but you still haven't sold it, no tax is due.
The tax on dividends is 13%. But you get tax-free money into your account right away. The broker does everything for you.
Bond tax
The profit from speculating (buying and selling) any bonds is 13%.
Coupon income from municipal bonds and OFZ, and bonds issued prior to January 1, 2017 are not taxable.
The tax on coupon income on bonds issued after January 1, 2017 if the coupon rate exceeds the key rate is 35% per percentage of the excess. That is, if the rate is now 5% and the coupon interest is 11%, you pay tax on 11% - 5% = 6% of your coupon income.
Important: Starting in 2021, coupon income on all bonds will be taxed at 13%.
ETFs and funds
The appeal of ETFs is that no tax is paid on them, as the dividends are simply reinvested. All ETFs on the Moscow Exchange work this way, except RUSE.
U.S. stocks
The tax on American papers is the most difficult to pay. The nuance is that you have to pay both in the USA and Russia, as there is a difference in rates, and there is a treaty between the countries on the avoidance of double taxation.
So, you pay tax in Russia even if you trade through a foreign broker. The rate will be 30% if there is no signed Form W-8 BEN. If there is one, the tax is reduced to 10%. The difference of 3% must be paid independently by filling out a declaration. Recall that only a Russian broker is obliged to act as a tax agent for you, foreign brokers are not concerned. In this case you will have to do everything yourself.
How do I pay taxes from investments?
If your broker is Russian, he will do everything for you (send data to the tax office, transfer money), except in the cases described above.
When is the tax assessed? In three instances:
- at the end of the fiscal year,
- at the time of account closure
- and when you withdraw money from the account.