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Individuals will need to pay tax on interest on deposits in 2024

From January 1, 2023, for income from deposit the tax benefit will be#nbsp;not applicable. It#nbsp;was an#nbsp;exemption from tax on#nbsp;interest on#nbsp;deposits in#nbsp;Russian banks received in#nbsp;2021 and 2022 (Clause 91, Article 217 of#nbsp;the Tax Code of#nbsp;the Russian Federation).
But at#nbsp;the end of#nbsp;March 2022, the President of#nbsp;Russia signed a#nbsp;new law that temporarily allowed individuals not to#nbsp;pay tax on#nbsp;income from deposits. According to#nbsp;it, individuals should not pay personal income tax on#nbsp;interest income on#nbsp;bank deposits received in#nbsp;2021−2022. Thus, in#nbsp;2022 (on#nbsp;income received in#nbsp;2021) and 2023 (on#nbsp;income received in#nbsp;2022), there was no#nbsp;need to#nbsp;pay such a#nbsp;tax.
From January 1, 2023, this benefit will cease. The income tax rate will be#nbsp;the same for residents and non-residents#nbsp;— 13% personal income tax.
For interest income from deposits, the state has introduced a#nbsp;non-taxable amount of#nbsp;income. Anything above this amount is#nbsp;taxed. The amount exempt from tax will be#nbsp;calculated as#nbsp;follows: the maximum key rate of#nbsp;the Central Bank for the year is#nbsp;multiplied by#nbsp;the amount of 1 million rubles.
Thus, for now, the non-taxable amount of#nbsp;interest will be#nbsp;130,000 rubles. If#nbsp;the Central Bank raises the rate again by#nbsp;the end of#nbsp;2023, the tax-free amount will increase.
How many deposits you have and for what amount does not matter. It#nbsp;is#nbsp;important whether the total interest you receive exceeds the non-taxable minimum. If#nbsp;yes, then tax will have to#nbsp;be#nbsp;paid.
If#nbsp;an#nbsp;individual has bank deposits in#nbsp;foreign currency, he#nbsp;must also pay taxes according to#nbsp;the new scheme, regardless of#nbsp;the rate. Income will be#nbsp;recalculated into rubles at#nbsp;the Bank of#nbsp;Russia exchange rate that was in#nbsp;effect on#nbsp;the interest payment date.
Income from deposits with an#nbsp;interest rate of#nbsp;no#nbsp;more than 1% per annum and income from escrow accounts will not be#nbsp;subject to#nbsp;income taxes.
Individuals need to#nbsp;pay tax on#nbsp;deposits by#nbsp;themselves. But they don’t have to#nbsp;file a#nbsp;declaration. Banks will send information about deposits and income to#nbsp;the Federal Tax Service. They must report by#nbsp;February 1 of#nbsp;the following year.
If#nbsp;income from the deposit exceeds the tax-free base, the Federal Tax Service will notify the individual. Taxes for the previous year will need to#nbsp;be#nbsp;paid by#nbsp;December 1 of#nbsp;the following year. For example, for 2023#nbsp;— until December 1, 2024.