Taxation of Investment Income

Types of Investment Income and Their Taxation in Russia

Dividends from Russian companies: 13% personal income tax (PIT) (15% if the total annual income exceeds 5 million rubles).

Dividends from foreign companies: 13%/15% PIT. They are considered part of "passive income".

Coupon income on bonds: since 2021 — 13%/15% PIT without exceptions (previously federal loan bonds had benefits).

Capital gain: when selling securities — 13%/15% PIT is levied on the difference (sale price - purchase price - broker commissions). A loss on one instrument reduces income from another (netting within the year and carrying losses forward for 10 years).

Tax Benefits for Investors

Individual Investment Account (IIA): Type A — deduction for contributions (13% of the contribution amount up to 400 thousand rubles/year = up to 52 thousand rubles deduction). Type B — exemption of profit from tax. IIA-3 (since 2024) — hybrid type, requires 5 years of ownership.

Long-term holding benefit (LTH): securities purchased after 2014 and held for 3+ years — exemption from PIT on capital appreciation (deduction 3 million rubles × years of holding).

Benefit for venture investments: innovative companies — zero rate if held for 5+ years (provided several conditions are met).

Taxation of Investments Abroad

An individual who is a Russian tax resident is obliged to declare foreign investment income independently (a non-resident broker is not a tax agent). Deadline — April 30 of the year following the reporting year.

Practical Task

An investor during the year: (1) received dividends of 200 thousand rubles, (2) sold shares with a profit of 500 thousand rubles and a loss of 150 thousand rubles, (3) received a coupon on corporate bonds of 100 thousand rubles. The account is a regular brokerage account, not an IIA. Calculate PIT payable taking into account netting.