Taxation of deposits

Starting from 2023, income in the form of interest on deposits (account balances) is subject to Personal Income Tax (PIT) (hereinafter, PIT, tax) if it exceeds the amount of interest calculated as the product of 1 million rubles and the maximum key rate of the Central Bank of the Russian Federation in effect on the first day of each month in the specified tax period of the calendar year.  

Exception:

— interest paid on escrow accounts and on deposits (account balances) in rubles for which the interest rate during the calendar year did not exceed 1% per annum

— income in the form of interest received in 2021 and 2022 on deposits (account balances) with banks located in the territory of Russia

Interest received by individuals on foreign currency deposits or accounts is taken into account regardless of the interest rate and is converted into rubles at the official exchange rate of the Bank of Russia on the date this income is actually received.

When determining the amount of interest for 2023 that is not subject to taxation, for 2023 the Federal Tax Service will use the maximum key rate of 15%.

In 2023, income in the form of interest on deposits or accounts with banks in the amount of 150,000 rubles (1 million rubles × 15%) is not subject to Personal Income Tax (PIT).

The tax base and tax on income in the form of interest are determined by the tax authorities. The data is provided by banks, the Central Bank of the Russian Federation, and the Deposit Insurance Agency (DIA).

Interest income on deposits and accounts is subject to Personal Income Tax (PIT) at a progressive tax rate of 13% or 15%. If total income (salary, profit from securities, etc. under Clause 2.1 of Article 210 of the Tax Code of the Russian Federation) does not exceed 5 million rubles, the 13% rate applies. For amounts exceeding 5 million rubles, the rate is 15%.

The tax must be paid by December 1 of the year following the reporting year. For income for 2023, the tax on interest on deposits or accounts must be paid by December 2, 2024.

The tax is paid based on a notice from the tax service. The bank pays interest on deposits in full without withholding tax. Information on account income is displayed in the taxpayer's personal account.

The tax notice for 2023 will be sent to depositors in September–October 2024.