Changing the mechanism of taxation of income on bonds


The Central Bank and the Ministry of Finance are discussing possible options for adjusting the taxation mechanism of coupon income on bonds.

Nowadays, you buy a bond and pay the accumulated coupon income. Still, when you receive the coupon income, you cannot reduce your income by the amount of the accumulated coupon income you already paid. It turns out to be a rather strange situation when you pay tax on income that is not income.

Obviously, the accumulated coupon income you paid when buying the bond should be deducted from the coupon income.

By far, two options have been proposed: either to provide for bonds a procedure for reducing the tax base or to provide a new tax deduction for income on bonds.