An individual investment account (IIA) is a special type of account that provides the account owner with certain tax benefits. The account is opened and maintained by a broker (or manager) on the basis of a brokerage service agreement (or a securities trust management agreement). Such an account can only be opened by an individual who is a tax resident of the Russian Federation. And only one account. In this case, it is necessary to conclude an agreement to maintain an IIS for at least 3 years - this is the minimum period for investing funds in an IIS to receive an investment tax deduction. You can receive a tax deduction on IIS in one of two ways of your choice: (1) you can receive a tax deduction annually in the amount of funds deposited into the account (but not more than the limit), or (2) if you made a profit from operations on an individual investment account, you may not pay income tax on this profit. This deduction is covered in Article 219.1 “Investment tax deductions” of the Tax Code.
How to calculate deductions and tax for refund
The deduction amount reduces the so-called tax base, that is, the amount on which tax is withheld from you. You will be able to receive from the state in the form of tax refunds not the amount of the deduction, but 13% of the amount of the deduction, that is, what was paid in taxes. However, you will not be able to receive more than you paid in taxes. For example, you deposited 100 rubles into an IIS. 13% of 100 rubles is 13 rubles. You can receive 13 rubles only if you have paid 13 rubles in taxes for the year. If you paid less in taxes, you can only get back what you paid. Also, when calculating, you need to take into account the deduction limit established by law. If the deduction limit is 400,000 rubles per year, your deduction for the year cannot be more, and the tax refund for the year cannot be more than 13% of the deduction limit, that is, 52,000 rubles. You can only return taxes paid at a rate of 13% (except for tax on dividends).
How to open an IIS?
To open an individual investment account, you will need to find a brokerage company that is licensed by the central bank. We are currently cooperating with the investment company CERICH, which has a high reliability rating of AA+ and all the necessary licenses for conducting transactions on the stock and foreign exchange markets. To open an investment account, you do not need to collect documents; you can do it online, without leaving your home. You need to go to link to the investment company page, choose the strategy and type of deduction that suits you best. After that, the brokerage company’s employees will contact you, tell you step by step what steps you need to perform to open an account, and even give recommendations on trading instruments. The main thing you need to remember is that you can open only one individual investment account, and you need to take the choice of a management company seriously.
Maximum deduction amount for IIS and conditions
This deduction can be received every year, an unlimited number of times. But the maximum deduction for contributions (method 1) is 400,000 rubles per year. There are no restrictions on the deduction of profits (method 2): personal income tax is not withheld for any amount of profit. In each of the methods, if you close the IIS earlier than 3 years from the date of concluding the agreement for maintaining the account, all refundable amounts of tax transferred to you will need to be returned to the budget.
Deduction on contributions (first method)
In order to receive a tax deduction for contributions to an IIS, it is necessary that you have only one agreement for maintaining an IIS. A prerequisite for receiving such a deduction is the availability of income (for example, wages) in the year for which it is planned to receive a tax deduction. Income from which tax was withheld and transferred to the budget at a rate of 13%, except for dividends. At the end of the year for which you want to receive a deduction, you must provide the tax office with a 3-NDFL declaration, a tax refund application, a 2-NDFL certificate and documents confirming the right to the deduction, that is, documents confirming the fact that funds have been credited to the IIS .
Profit deduction (second method)
You can receive a tax deduction on income upon termination of the agreement for maintaining an individual investment account, but not earlier than 3 years from the date of conclusion of such an agreement. It is necessary to provide the tax agent (broker) with a certificate from the tax office stating that you did not exercise the right to receive a tax deduction on contributions to an IIS during the entire term of the agreement for maintaining an IIS, and also did not have other similar agreements. After which your funds will be paid to you, and income tax will not be withheld. It does not matter whether you have other income taxed at a rate of 13%. If you close an IIS earlier than 3 years after its opening, personal income tax will be withheld from the profits from operations on the account.
Choosing between two methods
You can receive a deduction either on the contribution or on the profit. You need to choose one of two. Among others, there are the following selection strategies:
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Comparison of two methods
| Deduction on contributions | Profit deduction | |
|---|---|---|
| Who provides the deduction | Tax office | Broker (or manager) |
| What documents are needed | Declaration 3-NDFL, certificate 2-NDFL, application for tax refund, document from the broker on crediting the contribution | Documents from the inspectorate stating that the contribution deduction was not used |
| When can you get a deduction? | At the end of the calendar year in which the contribution was made | After 3 years from the date of account opening |
| Terms of consideration | According to the law, the tax office has 4 months to check your documents and transfer money | The broker (or manager) does not withhold tax from you immediately at the time of payment of profit |
| Deduction limits | 400 thousand rubles per year | The amount of deduction is not limited, but the contribution amount is no more than 400 thousand rubles per year |
| Notes | Withholding taxes required | --- |
Examples
Method 1. Alexandra’s salary in 2015 was 100 thousand rubles per month. Every month she received 87 thousand rubles (87%), the remaining 13 thousand rubles (13%) were retained by the employer and transferred to the budget in the form of personal income tax. Alexandra opened an Individual Investment Account in 2015, entered into an agreement to maintain the account for a period of 3 years and deposited 400 thousand rubles into the account during the year. In 2016, having contacted the tax office, Alexandra received a deduction for 2015 in the amount of 400 thousand rubles. The tax refund amounted to 52 thousand rubles. In 2016, Alexandra deposited 200 thousand rubles into the same IIS. In 2016, Alexandra's salary was the same as in 2015. In 2017, Alexandra received a deduction for 2016 in the amount of 200 thousand rubles, and the tax refund amounted to 26 thousand rubles.
Method 2. Svetlana opened an Individual Investment Account in 2015, entered into an agreement to maintain the account for a period of 3 years and deposited 500 thousand rubles into the account for the entire period of the agreement. Svetlana did not receive a deduction for contributions to IIS (method 1). In 2018, after 3 years had passed, Svetlana decided to close the account. She received 600 thousand rubles. Her profit amounted to 100 thousand rubles. She has the right not to pay income tax (receiving a deduction) from these 100 thousand rubles.
Documents for obtaining a deduction for contributions
Such documents must be submitted to the inspectorate to receive a deduction for contributions (first method):
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How to get a tax deduction
On the Tax website you will find everything you need to get a deduction. Now you don't need to contact consultants. You can do everything quickly and reliably:
1 Fill out the declaration and return application on the Tax website. With us, filling out the declaration and application correctly will be quick and easy.
2 Attach supporting documents to the declaration. Documents confirming your right to deduction.
3 Submit documents online or take them to the inspectorate and receive money. All you have to do is submit the prepared documents online through the Tax Office or take them to the inspectorate.
To proceed to filling out the 3-NDFL tax return on our website, please click the Next button below.
If you do not yet have an individual investment account, click the Open IIS button. You will be taken to the CERICH broker website where you can do this.
The volume of funds in individual investment accounts (IIA) in Russia has grown almost 2.5 times. In Russia, as of mid-December 2016, more than 177 thousand IIS were opened. If the amount of assets in IIS accounts at the end of 2015 was just over 5 billion rubles, then by the end of this year this volume may already exceed 12 billion. The influx of money into IIS is increased due to annual bonuses, bonuses and 13 salaries.
What are the benefits of opening such an account in terms of taxes?
The owner of the IIS receives a tax deduction from the state. You are given one of two tax deduction options, which in different forms can compensate for the 13% income tax (personal income tax). That is, in three years, when investing each year a maximum amount of 400 thousand rubles, you can get 156 thousand rubles - and this is only due to tax benefits, without taking into account the result from the investments themselves.Another option is when the investor does not take advantage of the contribution benefit, but all income received from operations on the IIS is exempt from paying personal income tax after three years of the account’s validity.
At the end of 2016, there has been an increase in the influx of funds into individual investment accounts - in particular, these are those bonuses, bonuses and 13th salaries that in past years people transferred to deposits without unnecessary hesitation. It is also worth taking into account the desire of investors to receive a more substantial amount of tax deduction next year, because for this it is necessary to have time to purchase assets before the end of the current year.
What is the best way to manage the funds in an individual investment account?
IIS owners choose strategies for themselves depending on their level of experience and knowledge. For those new to the financial market, it is usually recommended to use conservative solutions. For example, bonds of reliable companies. Some new clients buy dollars and euros at favorable exchange rates. Some choose riskier strategies. Those who already have successful experience investing in the market, for the most part choose aggressive strategies and actively trade shares in the derivatives market.Is it possible to return personal income tax without unnecessary hassle and going to the tax office?
There are fewer and fewer formal obstacles to opening an individual investment account. There are services, including those from investment companies, that allow the account owner to easily receive a completed Form 3 of personal income tax for submission to the tax authority.IIS is gradually becoming one of the drivers of development of the domestic stock market. The innovation increases people's interest in investing, because thanks to tax incentives there is an opportunity to try their hand at the stock market. Government support already suggests that this market is an important part of the economy and personal financial planning. The growing popularity of IIS is accompanied by such factors as a decrease in rates on bank deposits and an increase in the financial literacy of the population.
What if step by step? What are the instructions for opening an investment account and returning personal income tax?
- Where to come?
To a licensed brokerage or management company. - What documents should I have with me?
To open an account, it is enough to have a Russian passport. - What papers need to be filled out?
Standard kit for opening a brokerage account. Our employee will prepare all the necessary documents for the client. - How long does it take to open an account?
No more than 20 minutes. - Do I need to already decide on an investment option before coming to the office?
The client can make a fundamental decision on investment, as well as on what strategy will be used, both when opening an individual investment account and later.
Can you describe in detail the options for returning personal income tax if you open an individual investment account?
1 option— annual 13% discount on contribution. Open an IIS and deposit up to 400,000 rubles into it. This contribution reduces the tax base: the investor can count on a personal income tax return from the budget in the amount of up to 13% of the amount deposited into the IIS. That is, by opening an account for a maximum of 400,000 rubles, you can count on a personal income tax refund of up to 52,000 rubles. To do this, you need to contact the tax service with a certificate from a broker, which indicates the amount of funds deposited into the IIS.At the end of tax season, any refund due will be deposited into your bank account. If the investor adds funds every year, then the operation can be repeated annually - deposit funds into an IIS and reduce the tax base by 13%. An important point: such a tax refund can only be received by an investor who has already paid personal income tax (for example, from salary) during the year when the contribution was made. Therefore, the investor can expect a refund of no more than the amount of tax already paid to the treasury. When closing an investment account, you will have to pay a 13% tax on income received from transactions in the account.
This option may be suitable for conservative investors: 52 thousand with a contribution of 400 thousand per year is practically “in your pocket”, and this profitability can be increased with the help of conservative investments.
Option 2— Income without tax. This type of individual investment accounts assumes that the investor does not receive a contribution benefit, but all income received from operations on the IIA is exempt from personal income tax after three years when closing the IIA.
This option may be of interest to active traders who are willing to accept higher risks in anticipation of potentially higher returns.
When choosing the type of individual investment account, it is worth remembering that although you cannot change the type of IRA, you do not make the choice for life. After three years, you can close the account and open a new one - with a different type of taxation.
The owner of an individual investment account has the right to choose one of two tax deductions:
1). The deduction for contributions allows you to receive an annual deduction from funds contributed to an IIS during the tax period, but not more than 400,000 rubles. The refund is made from tax withheld at a rate of 13% (except for dividends) for the specified tax period. In 2017, for the tax period from 400,000 rubles. up to 1 million rubles (Federal Law dated June 18, 2017 No. 123-FZ). However, the amount of the IIS deduction “for contributions” has not been changed.
2). The income deduction involves exemption from personal income tax for positive financial results obtained from transactions with securities and derivative financial instruments on an individual investment account. The deduction is provided when closing an IIS after at least 3 years from the date of conclusion of the agreement (clause 4 of Article 219.1 of the Tax Code of the Russian Federation).
You can read more about deductions and how to choose the type of deduction in the article “”
Required documents to receive a deduction for contributions
To receive a deduction, an individual must submit a 3-NDFL declaration and attach the following supporting documents to it:
Certificate 2-NDFL. You should request it from your tax agent (employer, broker) by submitting an appropriate application. Another document that confirms the payment of personal income tax for the tax period to the budget (when selling an apartment, car, garage, currency, etc.);
Application for accession to the regulations (agreement on maintaining an individual information system). At Otkritie Broker, when opening an IIS, the client is given a copy of the application for accession to the regulations. This document confirms that the IIS has been opened.
Documents confirming the transfer of funds to the IIS: brokerage report for the year, which can be requested from the broker, and a payment order, which should be requested from the bank;
Application for return (Appendix No. 8 to the order of the Federal Tax Service of Russia dated February 14, 2017 No. ММВ-7-8/182@).
Form and deadlines for submitting the declaration
The declaration must be submitted in the prescribed form. That is, each year has its own declaration form. For example, for 2016, the 3-NDFL declaration should be submitted in an updated form (form approved by order of the Federal Tax Service of Russia dated December 24, 2014 No. ММВ-7-11/671@, as amended.
Order of the Federal Tax Service of Russia dated October 10, 2016 No. ММВ-7-11/552@). If the declaration is not submitted in the established form for a specific tax period, then the declaration will be refused.
In order to receive the deduction, the deadline for filing a return no later than April 30 does not apply. The declaration can be submitted at any time during the entire year following the reporting year, or within 3 years. For 2016, you can submit a declaration in 2017, 2018 and 2019. However
in the case when the declaration combines both items (tax deductions and the income part), then the deadline for submission is set - no later than April 30.
The declaration is submitted to the tax office at the place of registration (letter of the Ministry of Finance of Russia dated 04/02/2015 No. 03-04-05/18211):
In electronic form;
In paper form: in person, through a representative with a notarized power of attorney, by mail (clause 4 of article 80 of the Tax Code of the Russian Federation).
Filling out the declaration electronically
The easiest and fastest way to submit a declaration is
its presentation is made through the “Taxpayer’s Personal Account for Individuals” on the website of the Federal Tax Service of Russia. This service allows you to fill out a declaration online and submit it electronically or upload the completed online declaration to a file for further printing and submission to the tax authority on paper.
First, you need to open the website of the Federal Tax Service of Russia nalog.ru and enter the “Personal Taxpayer Account”. When entering your personal account, in the top menu you should select “Income Tax”, then you need to go to the first section “3-NDFL” and immediately click on “Fill out/send the declaration online”. In the window that appears, you need to go down and click the “Fill out a new declaration” button.
To start filling out a new 3-NDFL declaration online, you must select the year for which it will be submitted. In the example, we will claim a deduction for IIS for 2016. Select the desired tax period and click “Ok”. The form of the declaration depends on the choice of tax period.
The program will redirect you to the home page for filling out the declaration. As you fill out each field, automatic prompts will appear on the right side.
To fill out the declaration you will need:
Passport
Bank details
After filling out your personal data, go to the “Income” tab by clicking the “Next” button. In our case, for 2016, the taxpayer received only the salary from which the employer withheld tax. Tax payment is confirmed by a 2-NDFL certificate.
By default, the program immediately prompts us to indicate income, which is taxed at a rate of 13%. Click the “Add income” button and in the window that appears, transfer the data from the 2-NDFL certificate.
Rice. 1. Filling in the data in the “Data” section
Rice. 2. Filling in the data in the “Income” section
Click the “Next” button and go to the “Deductions” section. In it, select the “Securities” tab. Check the box “Provide securities and investment deductions.” In the last field “Deduction amount” we indicate the amount of funds contributed to the IIS during 2016. Its size can be found in the broker's annual report.
Rice. 3. Filling out the data in the “Deductions” section
The “Results” tab reflects the annual salary in the amount of 540,000 rubles. The tax base is calculated taking into account funds deposited into the IIS of 140,000 rubles. = (540,000 rub. - 400,000 rub.). The total amount of tax calculated for payment is 18,200 rubles. = (RUB 140,000 * 13%). The budget must return 52,000 rubles. (RUB 70,200 - RUB 18,200).
Rice. 3. Filling in the data in the “Results” section
The program offers us two options: either print the declaration and submit it in paper form to the inspectorate, or generate a file to send electronically.
If we choose the latter option, then the next action will be to attach photographs or scans of supporting documents to the declaration.
To send the declaration and accompanying documents to the inspectorate, either a key for an enhanced qualified electronic signature or any of two options for an enhanced unqualified electronic signature, which can be downloaded directly from your Personal Account, must be installed on your computer by following the link. The service provides the opportunity to set one of two electronic signature options:
The electronic signature key is stored on the workstation;
The electronic signature key is stored in the secure system of the Federal Tax Service of Russia.
After confirmation, you can sign documents with an enhanced non-qualified electronic signature. To do this, enter the password to access the certificate and click the “Submit” button. After this, the declaration cannot be edited.
In addition to sending 3-NDFL, to make a refund, you need to fill out and send an application in the same way; to generate it, follow the link “Return Applications”.
The documents have been sent. After confirmation from the inspection that the declaration has been accepted, a desk audit is carried out. The duration of this inspection is no more than 3 months. Based on its results, the inspectorate will have one month to refund the tax.
Recently, the state has granted a working person the right to receive a tax deduction when using an investment account (this scheme does not work with deposits).
The law allowing you to take advantage of a refund of 13 percent of personal income tax when opening an individual investment account appeared at the beginning of 2015. But despite the passing of several years, there is still a misunderstanding: the investment tax deduction - what it is and how to get it.
First, let's define the concept and features of IIS. After all, without understanding what kind of beast this is – an individual investment account, it will be difficult to move on.
In simple terms, this account can be opened:
- at the bank providing such a service;
- at a brokerage firm.
If you open it, there are two options for working with it, as with a regular brokerage account:
- independent work with funds in the account;
- trust management carried out by brokers.
But an individual account also has its own characteristics that must be observed in order to be able to take advantage of the investment deduction:
- mandatory period of open deposit, which is at least 3 years;
- maximum annual amount, the size of which is 400,000 rubles;
- a person cannot open several such accounts; he will have to limit himself to only one individual account.
Investment deduction options
The legislator suggests that an individual choose one of the deduction options associated with an open investment account:
- receive 13% every year on funds placed in the account and not exceeding the limit of 400 thousand rubles. per year;
- exempt your income from transactions in this account from tax after three years.
But it is important to understand that one of the methods is selected simultaneously with the opening of an investment account, and change your mind within an open account there won't be a chance.
Therefore, you should weigh all the pros and cons, evaluate your capabilities in working with financial instruments and come to what will be more profitable.
Multiplicity of investment deduction
So, you cannot use several options at the same time. However, we note the possibility of receiving a deduction more than once.
In the first case, when a person returns 13% of the deposit, the procedure for providing a deduction can be repeated annually until the termination of each new three-year contract.
The second case allows the conclusion of the next agreement for maintaining an investment account after 3 years of existence of the previous one and receiving a refund of income tax upon expiration of its validity.
Trade or wait passively – how to choose?
Choice is most often a positive thing. At the same time, doubts arise about its correctness. Regarding our topic, the question arises: “How to choose so as not to make a mistake?”
It all depends on a person’s activity, literacy in the field of securities and working with them, time and purpose.
In other words, if the owner of an investment account is ready for a stable fixed amount of benefits and he does not have the desire, opportunity or need to carry out any financial actions, then he will choose the first option.
If a person is ready to take risks and is confident that he can get income from trading securities, then he can safely agree to option number two.
For comparison and better understanding, let's look at a detailed example.
Calculation of tax benefits
Example. Let’s assume that two individuals completely unknown to each other: citizen Zhitochny and citizen Avoskina made a simultaneous decision to open an investment account. Their deposit amount per year is the same and amounted to 290,000 rubles.
At the same time, Zazhitochny chose for himself the method of receiving a deduction in the form of 13% of the deposit placed, and Avoskina decided to increase her income by trading shares. The contracts, both of them, were concluded, as expected, for 36 months.
1. What do we see as a result? first year. After its expiration, a wealthy person has the opportunity to receive a deduction in the amount of 13 percent of 290,000 rubles. and get back 37,700 rubles. = (290,000 * 13%).
We assume that Avoskina’s trading is also profitable, and she managed to earn 90,000 rubles from trading. But she cannot yet take advantage of the deduction in the amount of income from the sale, since 3 years of owning the securities have not expired.
2. Towards the end second year The wealthy man decided to deposit additional funds of 50,000 rubles into the account. Avoskina again slightly increased her income and earned an additional 30,000 rubles.
Once again, after a year, Prosperous decides to use his right to a deduction in the amount of the contribution and returns the tax in the amount of 6,500 rubles. = (50,000 * 13%). Avoskina still has to wait until the end of her third year.
3. Finally came to an end third year, during which Prosperous supplemented his investments with an amount of 180,000 rubles. and received a deduction of 23,400 rubles. (180,000 rubles * 13%), and Avoskina received another 15,000 rubles. income from the sale of shares, and can now finally take advantage of the deduction provided on the income she received for all three years.
Let’s calculate the amount of tax refundable for both for the entire period of validity of the IIS:
Tax for the return of the Prosperous for 3 years 37,700 + 6,500 + 23,400 = 67,600 rubles.
Avoskina's tax (90,000 + 30,000 + 15,000) * 13% = 17,550 rubles.
The difference in the amount of income tax refunded is quite large, but do not forget that Avoskina, in turn, received additional income as a result of trading activities in securities in the amount of 135,000 rubles.
What can prevent you from getting a deduction?
If a citizen terminates the agreement on maintaining an investment account before the end of the third year or withdraws money placed on the account, he loses the right to deduction.
At the same time, the amount of tax that he will have already received as a refund by that time, this person will be obliged to return to the state. So you need to remember this!
If we return to our example, if our Prosperous One terminates the contract in the second year of owning the account, he will have to return to the treasury 37,700 rubles, which he received as a tax refund, and in the third - already 44,200 rubles. = (37,700 + 6,500). This is the deduction amount for the previous 2 years.
Tax refund procedure
Since there are two options for tax refund, at least two procedures are assumed. So, step-by-step instructions for obtaining a tax deduction under IIS.
1. If an investor intends to return tax on the deposit amount, then as soon as the year ends, he submits a 3-NDFL declaration in the general manner and attaches documents on opening and maintaining an investment account. These include an agreement with a broker or a bank, or a certificate of an open account, as well as a certificate of income from the place of work 2-NDFL.
2. When income from operations on the account is selected as a deduction, the account owner can submit to the tax authority a declaration for the past three years (after their end) with attached certificates of income and certificates of maintaining an investment account.
Or he can contact a broker, having first obtained a certificate from the tax office about non-use of the right to an investment deduction. In this case, based on this document, the broker will not withhold the amount of tax from the income received by the account owner.
And remember that it is impossible to use this type of deduction through your employer.
If you need help filling out the 3-NDFL tax return, as well as sending it through your Personal Account, leave a request on our website: Forget about having to study a lot of articles about tax deductions! Our professional consultants work to quickly, easily and competently solve your problems!
In conditions of economic crisis, the return on assets is unstable. But at the same time, risky activities can bring additional profit. When diversifying investments, private investors often use the possibilities of an individual investment account, which is subject to tax deductions. And this makes IIS even more attractive. This material discusses basic concepts, reveals the essence of tax benefits and the mechanism of working with IIS.
An IIS format account is an agreement with a broker or management company, which is applied for by an individual who is a tax resident of the Russian Federation (this category includes both citizens of Russia and persons continuously residing in the country for more than 6 months during a calendar year).
In addition to brokers and management companies, individual investment accounts are opened by banks that operate similar programs. The latter include Sberbank, VTB, Alfa-Bank.
A citizen entering into an account servicing agreement must be an adult.
IIS is a financial instrument that allows individuals with any level of income to learn how to invest. To start working with a brokerage account, you need to deposit any amount up to 1 million rubles into it (accounting is carried out only in national currency). It is introduced gradually or at once. According to some experts, the minimum amount with which you should start working with an investment account is 50 thousand rubles. A smaller investment will not pay for itself due to the presence of commissions in favor of intermediaries.
You cannot deposit foreign currency or securities into your account. After depositing money, the investor receives the right to work with all known financial instruments - this group includes shares, bonds, shares of funds (in particular, those traded on the capital stock exchange, including foreign ones).
The maximum amount available for investment in the account has been increased from four hundred thousand in 2017. If the client transferred more than a million, the excess is returned to him in full. Before signing a cooperation agreement, you should study the company's license data.
The IIS system began operating in 2015 and since then has been successfully developing within the framework of the Federal Law, which complements the main legal act regulating the securities market.
IIS technologies and mechanisms are popular in the United States of America and are common in Australia, Japan, Great Britain and Canada. In the USA they are developed in the pension sector, a similar trend is observed in Canada and Australia, while savings formats are preferred by the Japanese and the British.
In general, such accounts are popular among people who can call themselves middle class and have the opportunity to invest excess income. To work successfully, their earnings should not be less than 35-40 thousand rubles per month. The main purpose of signing an agreement to open a service account is to increase existing savings.
According to financial market experts, the system of accounts intended for personal investment programs is a successful addition to investments in non-state pension deposit programs.
The profitability of IIS exceeds that of banks and averages 21%. No client will be offered such an interest rate on investments on any deposit. The minimum return on individual investment accounts is 13%. Also, some companies with which an account servicing agreement is concluded award additional bonuses. For example, FINAM will charge half the refinancing rate to the free balance of the stock and derivatives market.
In addition to the profit from investments, the account holder receives a tax exemption and a subsequent deduction for personal income tax. The emergence of the investment account format was associated with the desire to increase the prestige of private investments and attract individual financial savings as a source of company assets.
It's no secret that bank loans for businesses are quite expensive. Individual investment accounts are a natural and legal mechanism for raising private funds.
When opening an account, labor and age status are not taken into account. The main requirement is to make tax payments to the Russian budget.
Traditional brokerage account holders should be aware that taxes are always withheld. You can receive tax benefits only by opening an IIS. Additionally, a mechanism for returning personal income tax from transactions with financial instruments is possible, such as transferring funds from a regular brokerage account to an investment account. There is a restriction for such transactions during the year - the amount of deduction cannot exceed 52 thousand rubles.
The state is currently not involved in any way in insuring the funds in the account. If they are converted into assets, then as a result of this operation the client acquires property and this creates obstacles to abuse, but no one can give a complete guarantee of safety. This is the risk of a high return investment account.
There is a myth that account opportunities are available only to those who are ready to take the maximum degree of investment risk. However, even the most conservative investor will be able to receive bonuses from owning an IIS. In particular, the purchase of government bonds can bring income higher than that of banks. Some corporate sector bonds yield 20% per annum, which, taking into account the 13% tax benefit, gives a total return of 33% per annum.
In addition, there are a lot of services that allow you to copy successful transactions, allowing you to conduct financial affairs without special preparation. At the same time, control of the market situation and parallel acquisition of knowledge are not canceled. However, at first, such opportunities are a good help for a beginner.
Forex fans should remember that IIS is not suitable for this. Currently, the issue of entering the foreign market is under discussion. In particular, the option of investing in American shares traded on the exchanges of the northern capital is being considered. Like any instrument of the financial market of the Russian Federation, an individual investment account is going through a stage of formation and development, so we should expect an expansion of opportunities in the near future.
How to become an account holder
The trust management agreement is the basis for working with the account, since it is in this format that the client begins to invest. The first stage consists exclusively of offline operations, the total duration of which will not take much time - from half an hour to 2 hours, and most of it will be spent on consultations and explanations of the broker, bank representative or management company. The client will receive detailed information on how to work with the account, what bonuses await him, what is required to carry out transactions, control profits and interact with the broker.
By law, a private investor can only use one active investment account. You cannot open several accounts in a bank or company at the same time. To change a broker, you must first terminate the agreement under the previous IIS. In addition, the legislation of the Russian Federation provides for the transfer of an account with the preservation of all data from company to company. It is also possible to open an account for close relatives (sister, parents, child over 14 years old, etc.) and manage it by proxy.
A passport is sufficient to conclude a contract. It is not necessary to know the TIN data, but it is advisable to have an identification number with you, writing it out on a separate sheet of paper.
You need to have a flash drive with you, as the broker will provide the new client with a record with an electronic digital signature key. Using an electronic digital signature significantly simplifies contacts with a broker and eliminates the need to duplicate orders in writing via Russian Post.
Otherwise, without documentary evidence, transactions may be subject to a fine.
In addition, the client may be asked for bank account details.
A potential client should be prepared to provide information:
- Personal details of the new client - he fills out the questionnaire and leaves it with the broker/employee of the management company.
- Two copies of applications for the provision of account servicing with the opening of an IIS are signed. The text also indicates that the client is familiar with the rules of electronic document management.
- Documents related to obtaining an electronic signature are signed.
- At the final stage, instructions are given on how to transfer funds to an IIS.
You should remember about the commissions that apply between banks, since the main form of replenishment is non-cash payments. It is useful to find out in advance which bank the company is serviced by in order to avoid unnecessary costs if possible.
At the second stage, work with the contract for servicing the information information system moves into the Internet space.
At the moment of signing the above documents, information is sent by email to activate the signature and enter the operations area so that the client can pay the cost of the assets he has chosen directly from the account. In parallel with the brokerage account, a trading account will automatically be opened for the company’s client, and it can also be used, but without providing benefits.
In addition to the possible bank commission and the purchase of a flash drive, the potential owner of an IIS does not incur any costs for concluding a service agreement.
If the client is located in a locality where there is no branch of the company, he should turn to remote work mechanisms. To open an account and start working, he will need to leave an electronic application online and wait for a call back with information. After providing the coordinates to the operator, you will receive information about the documents that will need to be filled out and sent to specialists by email.
If you are unable to visit the office, you must take into account that in order to obtain an IIS, you will need to confirm your identity using a copy of your passport and send an application certified by a notary (preferably using a courier service). Next, you should wait until the broker or representative of the management company sends a response package.
What to look for when choosing a company
The form should not contain phrases such as “consulting services”, “remote” or “educational”, “individual investor accounts”, “individual investments in accounts”. IIS services are implemented with the support of the state, so all terms must have specific wording.
Speaking about specific credit institutions, brokers and management companies, three groups should be distinguished for potential placement of funds:
Table 1. Companies for opening an individual investment account
You can check the availability of a license on the Bank of Russia website. It is not recommended to interact and enter into agreements with market representatives who come from abroad, since their activities are currently not protected by Russian legislation.
Before choosing a company, you should study the service rules and tariffs, taking into account all commissions - concluding an agreement, account maintenance, etc.
Tax preferences for owners
In order to become a participant in the preferential deduction program, you cannot withdraw funds from your account or terminate the contract for 3 years, which are counted from the date of conclusion of the contract. The IIS deduction is similar to other deductions, but there are differences. Personal income tax, which is accrued when housing conditions are improved, is returned once and in a certain amount, while IIS income can be received unlimitedly and similarly use deduction opportunities.
A client who has been using the account for ten years can receive a deduction of 520 thousand rubles, and under certain conditions (discussed below) this amount will be the maximum for him. However, it clearly exceeds other tax benefits available to citizens of the Russian Federation.
In general, the earlier a service contract is obtained, the sooner benefit options are available. The program itself is open-ended.
If you withdraw part of the funds before 3 years of validity of the individual investment account, transferring them to a trust or another company, tax benefits on the profit received will remain. Otherwise, earlier cashing out will lead to the fact that the benefits received will need to be returned to the state and prepare to pay taxes on all transactions, since the account will be transferred to brokerage status.
For those who are serious about investing, 3 years is not too long a period of time to invest funds. Therefore, this feature of the IIS cannot be defined as a disadvantage and is readily considered by private individuals.
Companies and the government offer account holders a choice of two benefit options.
Table 2. Types of preferential instruments
| Deduction 1 | Deduction 2 |
|---|---|
| You can transfer up to a million rubles to your investment account within a year. | |
| The minimum validity of the contract without returning deductions to the state is three years of continuous work and accruals | |
| The deduction is transferred every year | The deduction will be transferred at the end of the 3-year period |
| The deduction is limited to the amount of 52 thousand rubles during the reporting period, as this is provided for by the state program (13 percent of the amount of 400 thousand rubles is the maximum amount) | Deductions are not limited |
It is not allowed to use two options at the same time.
First type deduction
If a potential client who needs to become the owner of an IIS works officially with confirmed earnings, a deduction for specific investment amounts is suitable for him. He will be able to replenish assets and receive a 13% return at the end of the corresponding period as a result of working with them.
Thus, the movement on the account is as follows: a tax is charged on income to the Central Bank, while the state provides the opportunity to receive refunds if the client bothers to submit information to the tax office.
This scheme is suitable for conservative investors who do not plan to actively participate in income growth on an independent basis and trust intermediaries, transferring up to a million rubles annually (in order to receive a tangible income, it is advisable to bring this amount closer to the maximum).
Under current legislation, the maximum amount not subject to personal income tax is four hundred thousand rubles. Therefore, a working investor will be able to reduce the tax base only partially.
If you overpay, the excess tax will be returned to the client.
In order to annually receive the benefits of the agreement and the corresponding income, you need movements in the account and periodic transfers without withdrawing funds.
An example of the first type of benefit
In 2016, I. I. Ivanov received 800 rubles in an official position, from which 13 percent was withheld. Consequently, the amount of tax payments amounted to 104 thousand rubles. In the same year, citizen Ivanov entered into an IIS format agreement with a brokerage company and contributed 400 thousand to it. In the next period, he can submit a declaration in which he will indicate his intention to reduce the tax base by the amount of opening an individual investment account by half (400 versus 800). At the same time, 13 percent of four hundred thousand (this corresponds to 52 thousand rubles) can be used as additional capital and used to increase income in subsequent periods.
The client’s net profit in the first option is formed from the difference between income and tax expenses (deduction, tax transfers to the budget)
Table 3. Calculation example
| Reporting period | Initial amount, in thousands of rubles. | Income for the year is 10 percent | Final amount in thousand rubles. | Tax refund, thousand rubles | Income including tax refund as a percentage |
|---|---|---|---|---|---|
| 2017 | 400 | 40 thousand rubles | 440 | 52 | 23 |
| 2018 | Sum of 400 and 440 = 840 | 84 thousand rubles. | 924 | 52 | 16 |
| 2019 | Sum of 924 and 400 = 1,324 | RUB 132,400 | 1 456, 4 | 52 | 14 |
| 2020 | Account Closing Procedure | 256.4 thousand rubles | Total 156 | The final return for the period was 17.7% |
According to the table, for the indicated three years of investment, the first deduction option brought the following results:
- The taxable amount was 256.4 thousand rubles.
- From the income received, the state will deduct personal income tax in the amount of about 33 thousand rubles.
- Tax reimbursement for the specified period is 156 thousand rubles.
Second type deduction
After three years of operations using IIS, all income will be exempt from taxation. This option is suitable for those who consider investing as their main activity. It may be of interest to professionals who are able to independently conduct activities on their own account without intermediaries and at their own discretion, using proprietary effective strategies and, accordingly, receive higher returns than the market average. This benefit is suitable for disabled and unemployed persons, i.e. all citizens who do not make payments to the budget on accrued income.
Thus, according to the second option, by the time the interaction with the company providing the trading space is completed, which should occur no earlier than 3 years from the date of conclusion, the final profit is calculated (it is exempt from transfers to the budget). If the client does not want to pay personal income tax, he can choose this type of benefit and sum up the final result on the date of closure of the IIS.
If you have a single source of income in the form of trading, the second deduction option is the only possible one.
Table 4. Calculation table for deduction of the second type
| Reporting year | Initial amount in thousand rubles | Income for the year is 10 percent, thousand rubles. | Final amount in thousands of rubles |
|---|---|---|---|
| 2017 | 400 | 40 | 440 |
| 2018 | Sum of 440 and 400 = 840 | 84 | 924 |
| 2019 | Sum of 924 and 400 = 1,324 | 132, 4 | 1 456, 4 |
| 2020 | Account Closing Procedure | 256, 4 |
As a result, for the period the private investor will receive about 260 thousand rubles of non-taxable profit.
In most cases, it is more profitable to use preferences from contributions, since not every investor will be able to effectively manage funds and return investments with a profit in 3 years. In addition, you can receive a deduction for contributions the very next year after depositing funds.
If the client remains in doubt about what to use as a benefit, this decision can be postponed while the contract is in force (at least for three years). Due to the fact that data from the last three years is used for deduction, upon completion of cooperation with the broker, you can choose any option that suits the client based on data for the specified periods.
It should be remembered that in this case, the benefit of the first type of deduction may be deferred due to inflation if the second option is chosen.
Example (calculations - thousand rubles): In 2016, citizen Petrova signed an agreement to open an individual investment account and made investments in the amount of four hundred thousand rubles. Investments in the amount of 200 thousand rubles are planned for next year, and in 2018 - an additional contribution of funds in the amount of 200 thousand rubles. When the account ends (this will happen in 2018), gr. Petrova will be given the right to choose the return option herself. If the profit received turns out to be more than eight hundred thousand rubles, then the benefit from the profit deduction will be obvious. If the profit turns out to be less, it is better to rely on contributions as a source of deduction.
You can select the type of deduction at a time convenient for the client. However, the rule applies: when choosing a deduction for contributions during the term of the contract, the decision cannot be changed. In addition, the deduction is only valid for the previous 3 calendar years. Based on this, you can analyze the potential profitability of both options and make a decision.
What papers can you buy?
So, the choice of deduction directly depends on the profitability of the account. In this regard, it is useful to know some of the features of investments made by private investors.
In general, investment options can be found in the text of the contract - they are established initially. The type of financial instrument is associated with other parameters (risk-return, their ratio and value):
- Bonds– a minimally risky acquisition, but the income for this category of securities is fixed and low. There is a tax benefit in terms of personal income tax for state and municipal securities. An option for the most cautious investors. Suitable for those who have chosen to deduct contributions.
- Mutual funds– investments in this instrument are associated with an average level of risk and average return. The best option to start is open index mutual funds. By investing in this type of instrument on the financial market, you can be sure that the strategy will pay off. Most experts recognize it as extremely reliable, subject to an investment of 3-4 years. It is not recommended to form a portfolio on your own at the initial stages - instead, it makes sense to trust specialists who
- Eurobonds– a financial instrument denominated in foreign currency, available only for investments through mutual funds.
- Stock– a high-risk instrument with which you can earn big profits. In most cases, purchasing the most popular shares of the largest market players is ineffective, since they can only bring substantial dividends in the long term. It takes highly specialized skills to make money in stocks.
- Futures is a tool for advanced financial market participants, which should not be invested in without sufficient knowledge. Brokers often use trading robots to make money in this category.
How to get a deduction
To receive a tax deduction for the owner of an investment account, he submits information to the tax authorities. The set of information depends on the type of deduction that the broker client chooses. In the first option, when contacting an inspectorate employee, you should have the following package of documents with you:
- Established Form 3 for personal income tax, the originals of which can be found from a specialist or on online resources.
- Confirmation of the identity of the person who entered into the IIS agreement. To receive money into your account, certified copies of the passport pages containing basic information and registration address are sufficient. You can use an alternative document that will indicate the taxpayer’s personal data.
- A certificate of income that can be provided by the employer, and the original will be required from the company's client. The established form of income information is 2-NDFL. If during the tax period the client changed several places of work, several certificates from them will be needed.
- In addition to tax documents and information about the client, he will need an application with bank account details where the deduction funds should be transferred. The sample can be downloaded on the Internet. The tax office accepts only the original of the specified document.
- Documents signed when opening an account and movements through the IIS (payments, receipt forms, applications for transfer of funds, which will be provided by a bank employee, etc.). Tax officials will review copies, but they must be certified.
Don't know how to fill out forms? You can familiarize yourself with these topics on our portal. Step-by-step instructions, sample forms, and how to avoid basic mistakes when filling out a declaration.
If a deduction is chosen based on receiving profit on a preferential basis, the client will not need personal income tax forms. To transfer funds to your address, the broker is provided with the following information from employees of the Federal Tax Service at the place of registration:
- No other deductions during the period of validity of the service agreement (type 1 - for deposited funds).
- Lack of valid agreements for account servicing with other companies.
Submitting information online to generate a deduction
In addition to a personal meeting with the inspector, investment account holders have access to an online option for submitting a declaration and all necessary documents.
This is true for the first option, when the client deposits money annually and receives deductions.
At the first stage of receiving funds, you need to go to the portal "Government services". To complete the transaction, you will need an electronic signature, which can be obtained in the “Profile” section. By clicking on the link, the visitor goes to the appropriate form for obtaining an EDS verification certificate.
Next, a request is generated and a password is requested - you should remember it in order to work according to this scheme in the future. It usually takes a few minutes for the certificate to be successfully issued. When work in your personal account is completed, you don’t have to go to the tax office and submit all the information remotely.
There are several recommendations for sending documents online:
- The total weight should not exceed 20 MB. To reduce the volume of scans, you can use archiving programs. This is the main requirement for the data package.
- It is required to comply with the criteria for resolution, image sizes, a certain format and black and white gamma.
- To ensure that the text can be easily read, the text is viewed at 100% scale before sending.
To complete the operation, follow a special link on the government services portal. From the information provided, the taxpayer will need to generate a declaration.
From the proposed reporting periods, you need to select the required one (in this case, 2016 is considered as an example).
Upon completion, a file is generated for sending.
For each document that is transmitted in the online service, a description is prepared:
The result is a total volume of documents that may look like this:
At the final stage, the security of data transmission is ensured. The electronic signature password is entered, after which the service begins processing the information. This may take a few minutes. After successfully completing all the required steps, the site visitor will see the current status.
You can check the progress of document verification in the special “Document Flow History”. The service also provides many opportunities to correct the submitted information.
Sooner or later, the user will see information about the amount of deduction under the IIS, which is available for receipt in the form of an overpayment:
The money will arrive in the bank account within 3-4 months, since the Federal Tax Service allocates the first quarter for studying the declaration and 1 month for actual issuance.
Even in the event of an immediate audit, you should not hope for a quick transfer of money, since tax authorities in this case are guided by official maximum deadlines.
For any method of transfer, documents must be certified by a notary or independently.
In the latter option, you must sign each page (strictly) as “Copy is correct” with a signature and transcript and date. Then you won’t have to go to a notary’s office to confirm the transfer of data.
Conclusion
A regular brokerage account is available to everyone, but it is not always of interest to individuals who do not have experience interacting with financial instruments. To attract funds from individual investors, the government proposed a program of individual investment accounts. It is characterized by tax benefits and is therefore beneficial to personal income tax payers. Those who do not have taxable income, but are well versed in trading, also have access to preferential IIS treatment. They should receive a tax deduction according to the profit they make. One way or another, everyone can find something attractive for themselves in opening an individual investment account. You don't have to have above-average income to do this. It is enough to make regular investments and not withdraw funds for a long time. The minimum period for working with an account is 3 years, but the program itself does not have a validity period.
Experienced traders can build their own portfolio and maximize income at their own risk. If a client does not feel capable of participating in transactions without the help of a broker, it is better to trust market professionals.
By law, you can have one IIS, but with a power of attorney, you can open several accounts and use their capabilities. The main thing is to understand that the type of tax deduction is strictly tied to the status of the taxpayer. If the client has an official job and pays taxes to the budget, then he can choose a deduction for credits to the account, or for the profit received over 3 years (minimum period - it can be longer). Otherwise, the client must provide himself with sufficient income on investments for the profit deduction to be beneficial, since the contribution deduction is not available to him. A mandatory requirement for annual investments and receipts of returns is the status of a Russian taxpayer.
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