State Duma proposes taxation plan for individual deposits

MOSCOW, Mar 31 (PRIME) -- A personal income tax with a standard rate of 13% will be levied on the amount of interest income on deposits that exceeds interest from 1 million rubles at the central bank’s key rate, according to amendments to the second reading of the bill that were approved by the State Duma’s budget committee and seen by PRIME late Monday.

President Vladimir Putin recently proposed to levy a 13% income tax on interests on deposits worth over 1 million rubles.

“The tax base is determined by the tax authority as the excess of the amount of income in the form of interest received by the taxpayer during the tax period on all deposits (account balances) at mentioned banks over the amount of interest calculated as the product of 1 million rubles and the central bank’s key rate, acting on the first day of the tax period, taking into account the features established by this article,’ the bill said.

With the current key rate of the central bank of 6% non-taxable income from deposits will amount to 60,000 rubles per year.

The bill also proposes to exclude deposits with an interest rate of no more than 1%, as well as escrow accounts from taxation.

(77.7325 rubles – U.S. $1)

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