Table of contents:
- What is IIS
- What are the features of an individual investment account
- How does the tax deduction for IIS work?
- What are IIS
- How to open an individual investment account
- What can you buy with IIS
2023 Author: Malcolm Clapton | [email protected]. Last modified: 2023-07-28 10:38
Get income from securities and tax deductions.
What is IIS
This is an individual investment account (IIA) - a financial instrument that appeared in Russia in 2015. With its help, the state is trying to motivate citizens not to keep money under the mattress, but to invest it in the economy.
In fact, IIS is the same brokerage account, only with special conditions. Through it, you can buy and sell securities in the same way. But at the same time, tax deductions are additionally provided, which make the IIS more profitable. However, there are also restrictions on receiving a tax bonus.
What are the features of an individual investment account
An individual investment account can only be opened by a tax resident of the Russian Federation, that is, someone who has been in the country for at least 183 days (not necessarily in a row).
One person can have only one IIS. If you open the second one, you must close the first one within a month.
It is allowed to deposit on IIS no more than one million per year and only in rubles.
How does the tax deduction for IIS work?
What are the tax deductions
They are of two types:
1. Type "A" - depends on the amount invested
You can return 13% of the money deposited into the account, but not more than 52 thousand rubles per year, because there is a limit for tax deduction. It cannot exceed 400 thousand per year. But a lot will depend on the size of your monthly salary.
Let's say, before taxes, it is 50 thousand rubles. From them you pay 6, 5 thousand rubles of personal income tax per month or 78 thousand per year. If for the current year you have deposited 400 thousand rubles on the IIS, then next year you will be able to return 52 thousand. And if you deposited 500 thousand, then the return amount will still be 52 thousand - this is the limit.
With an official salary of 30 thousand rubles, personal income tax per year will be 46, 8 thousand, and that is the maximum amount of refund, because you paid so much to the state.
We are talking specifically about the return of personal income tax, that is, you will not receive more than you give to the state.
Important: to take advantage of this deduction, you need to pay personal income tax. If you work unofficially or have an individual entrepreneur status and use, say, the patent taxation system, you will not get money.
2. Type "B" - depends on income from IIS
The income that you receive from transactions with securities on the IIA will not be taxed at 13%. For this type of tax deduction, it doesn't matter if you have other earnings.
What type of tax deduction to choose
Depends on your goals and situation. If you are a novice investor who is not going to actively trade on the stock exchange and does not expect big earnings from this, but at the same time you have sufficient official income from which you pay personal income tax, type “A” is more profitable for you. Even if you earn practically nothing on shares, up to 52 thousand rubles of income is in your pocket.
If you do not pay personal income tax or expect to hit a solid jackpot exceeding 400 thousand rubles a year, then type "B" is more profitable for you.
There is no need to choose the type of deduction when opening an IIS. This can be done later when you design it.
What are the restrictions for obtaining a tax deduction
An individual investment account must be in existence for at least three years. You cannot withdraw money from him during this period. Otherwise, you will not only lose your right to a tax deduction. If you have already received some deductible funds, you will have to return them, and even a penalty for each day of using this money in the amount of one three-hundredth of the Central Bank's refinancing rate.
In some cases, it is possible to withdraw dividends and coupon yield on bonds without losing the right to tax deduction. This will be the case if the broker transfers them to a bank account, and not to an investment one.
What are IIS
You can open an individual investment account with self-management or trust management. In the first case, you deal with securities yourself. Secondly, you delegate this to a specialist, and he is already investing money on your behalf.
Weigh the pros and cons and consider which option is best for you. If you know nothing about securities and want to trust a professional, you still need to know the basic principles of investing.
Trust management does not insure you against losses. Moreover, you will need to pay for the services of an assistant, regardless of financial results. Therefore, approach the question responsibly.
How to open an individual investment account
You need to contact a stock broker who provides such services and whose terms suit you. Check if it has the appropriate license from the Central Bank.
Just in case, you can familiarize yourself with the rating of trading participants by the number of registered IMS from the Moscow Exchange in order to understand what major players are on the market.
When choosing a broker, pay attention to the following points:
- Commission size - how much, when and for what you have to pay.
- A set of securities - what can you buy if you open an IIS. Different brokers give you different options.
- The system for withdrawing dividends and coupon income - in case you want to receive them and not lose your tax deduction.
- Customer reviews - it would be strange to ignore them.
- Ease of interaction - fast technical support, comfortable website and application for trading.
As always, read the agreement carefully and make sure that all points in it are clear to you. After signing the contract, the broker will open an account and then send you its details. You will be able to transfer money using them and trade securities, if we are not talking about trust management.
There are no restrictions on the frequency of replenishing the IIS, you can transfer money as often as you want. The main thing is that the total amount does not exceed one million per year.
What can you buy with IIS
Usually brokers give you access to the Moscow Stock Exchange, but sometimes the St. Petersburg Stock Exchange is also available. Accordingly, you can buy assets that are sold there. There is no access to foreign exchanges from IIS, but it is not prohibited to acquire securities of foreign companies.
And you can buy, for example:
- Currency. You start money on IIS only in rubles, but you can spend it on euros, dollars, and other currencies.
- Stocks and bonds are standard investment instruments.
- ETF and mutual fund - segments of portfolios created in an exchange-traded (ETF) or mutual fund (UIF) investment fund. Their meaning is that you are not buying specific stocks or bonds, but part of a set of securities already formed by someone.
In general, it is better to figure out what allows you to acquire a broker and how to handle these purchases before concluding a contract. Otherwise, it will be difficult to make money on IIA in terms of securities trading.
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