How to get income tax back and earn some more

What is an Individual Investment Account?

IIS is a brokerage account with special conditions for the owner. With its help, you can invest money in financial instruments with high potential profitability.

In addition, IIS allows you to receive additional income due to tax deduction. So the state encourages Russians not to keep money under the pillow, but to invest it in the economy and buy securities.

How does it work?

IIS is opened through a brokerage company. For example, this can help. The account will be registered on the Moscow Exchange. After that, you will need to deposit money on it - no more than 1 million per year, and only in rubles. The minimum contribution is unlimited. Money can be transferred both at one time and in parts.

Funds can be invested in stocks, bonds, currencies. You will receive the right to apply for a tax deduction at the beginning of next year, and you will be able to dispose of the money as soon as it is transferred: it will not come to your investment account, but to your bank account.

It is better not to withdraw money from IIS in the next three years, otherwise you will lose the right to tax deduction.

To open an individual investment account, you need to be a tax resident of the Russian Federation - stay in the country for at least 183 days a year (with the exception of military and civil servants who are abroad for work).

So what's with the tax deduction?

By law, the holder of an individual investment account can return the income tax paid to the state. In whole or in part - depends on several factors.

There is a type B deduction, in which income from securities transactions is not taxed. This option is suitable for experienced investors who plan to trade actively.

For beginners, it is better to choose a type A deduction. In this case, within three years, you will be annually returned 13% of the amount that you deposited on the IIS for the previous calendar year. True, there is a limitation: the maximum amount from which you can get a deduction is 400 thousand rubles. That is, you will be returned no more than 52 thousand per year.

It is important that the state does not give money, but returns it from the personal income tax you paid.

That is, you must have official earnings, from which you give 13% to the state. You cannot return more money than you gave.

Let's say you opened an individual investment account and deposited 400 thousand in it in the first year, 400 thousand in the second and 200 thousand in the third.

In the first year, your salary before taxes was 29 thousand rubles. For the year you paid 45,240 rubles towards personal income tax. And although you can get a deduction from 400 thousand, you will return only 45 240 rubles, which, however, is already a lot.

In the second year, you were charged 44 thousand per month. Personal income tax amounted to 68,640 rubles. You will receive a maximum deduction of 52 thousand rubles.

In the third year, you can return 13% of 200 thousand - 26 thousand.

Accordingly, in order to receive the maximum tax deduction of 52 thousand rubles per year, it is enough to have a salary of 33 334 rubles before personal income tax.

You can return income tax next year. But for this you need to have time to open an individual investment account and transfer money to it by the end of December.

It is better not to delay opening an account until the last moment: it will take another day for the IIS to be registered on the exchange. If you have time, then in January you will be able to submit documents to the tax service for a tax deduction.

You can open an IIS next year, only in this case, the return of personal income tax will have to be postponed until 2020.

I can open a deposit in the bank and receive interest, why do I need an IIS?

If you have savings that you won't need for the next three years, an Individual Investment Account is a great alternative to long-term deposits.

According to the Central Bank, the weighted average interest rate on deposits for over three years is 5.89%. Let's say you put 150 thousand rubles on a deposit now, reported 100 thousand on it in a year and another 100 thousand in two years. As a result, you will withdraw 397,555 rubles from your account, but only if the deposit was with interest capitalization.

On the IIS, you can report not only 100 thousand savings, but also the money received in the form of a tax deduction. In this case, in the second year you will deposit 119,500 rubles, in the third - 115,535 rubles. As a result, in three years you will withdraw 385,035 from your account. Add the last deduction of 15 thousand to them, and you will have 400 thousand rubles in your hands.

In terms of profitability, the difference with the deposit is insignificant. But with the help of an investment account, you can earn extra money on operations with securities, but a deposit will not give you such an opportunity. This means that you can potentially get much more with IIS.

I don't understand anything about securities, how can I invest?

The broker usually offers ready-made products that help you invest your money profitably. With the help of security professionals, you are more likely to choose options with high potential returns. For example, analysts at ITI Capital offer their clients several investment options with different entry thresholds.

One of the options -. This is a ready-made solution for an investor, a set of securities of several companies. Analysts compose it taking into account the risks and potential returns of stocks and bonds. The owner of the IIA can choose the portfolio that suits him.

As always when it comes to securities, the higher the potential return, the higher the risks. The potential return on model portfolios with an average risk level is up to 48% per year. To start investing with the help of these products, it is enough to have at least 50 thousand rubles on the IIS.

For example, you decided to choose a strategy with the lowest risk and invested 100 thousand rubles in a model portfolio. Coupon income is charged on bonds. According to analysts' forecasts, in a year your portfolio will cost 9% more - 109 thousand rubles. You will also receive another 13 thousand - a tax deduction of 13% of the deposited amount. Thus, you will increase your capital by 22 thousand rubles. If you put money in the bank on a deposit at 6%, you would receive only 6 thousand rubles.

If the individual investment account has more than 300 thousand rubles, you can pay attention to one hundred percent capital protection. Their potential profitability reaches 28% per year. You independently choose an asset, investment period and can predict changes in its price. If the forecast comes true, you can make money.

But even if the strategy does not justify itself and you do not receive income, the invested funds will still return in full: an agreement with ITI Capital guarantees capital protection. You can also get a tax deduction.

You invested 400 thousand in a structured product to increase the value of Gazprom shares for a year. If in 12 months the securities were worth less than you predicted, you would have got 400 thousand and 52 thousand from the tax deduction.

But the stock went up 24%. With a participation rate of 50%, you earn 12% of your investment - 48 thousand rubles. Taking into account the returned tax deduction in the amount of 52 thousand rubles, you received 100 thousand rubles from the IIS. Investing in a structured product is safer than investing in Gazprom shares directly: if you simply bought securities and they fell in price, you would lose part of your investment.

Conservatives can always invest in federal loan bonds (OFZ). By buying them, you are lending your funds to the state, so the risk of losing them is minimal.

The annual yield of OFZs is now estimated at an average of 8% - higher than on deposits. Do not forget about the tax deduction of 13% of the invested amount.

You have invested 100 thousand in OFZ with a face value of 1 thousand rubles. According to the Ministry of Finance, in three years you will receive 219.53 rubles from each bond - a total of 21,953 rubles. Together with the tax deduction, your income will be almost 35 thousand. This is an approximate amount as the numbers depend on the specific day you purchased the OFZ and other factors.

IIS is a good opportunity to start investing for those who have never done it. If you open an account now, the first financial results can be seen at the beginning of next year.