Financial Markets: Increasing Complexity, Maintaining Stability

3–5 July 2019, ST. PETERSBURG

    Russia’s Minister of Finance Anton Siluanov announced that the Ministry is ready to equal taxation for bank deposits and corporate bonds. The latter will no longer be subject to income tax.   

    At the International Financial Congress Mr. Siluanov commented: “We’ll reduce the rates [of the income tax] for those facilities that invest in corporate bonds. The new tax rates will be comparable to those for the deposits”. The Minister reminded that the Government had already made the decision.

    Mr. Siluanov added: “The same changes will apply to the general public. All the necessary amendments are prepared and will be introduced during the next parliamentary session in autumn. People, who currently invest their savings in bonds and pay the individual income tax, will no longer have to do this”.  

    Currently the yield upon bank deposits is not subject to income tax, if the interest rate does not exceed the key rate set by the Bank of Russia, while the yield upon corporate bonds is subject to tax.

    In December 2015 the President of the Russian Federation made the annual address to the Federal Assembly and assigned the Government to propose actions for further development of the bond market, including tax exemption for coupon yield upon bonds. The President believes that economy refreshing requires active use of domestic savings.