Russia’s tax on interest income from bank deposits expected to bring over $1.1 billion in 2024

Russia’s Federal Tax Service (FNS) has assessed the total tax on interest income from bank deposits made by Russian residents at 114 billion rubles ($1.1 billion) for 2023, surpassing the Finance Ministry’s projections by 12.2 percent, the agency’s head, Daniil Egorov, told RBC.

The tax must be paid by December 1, 2024, and RBC noted that the figure is not yet the final total for collections.

The law introducing the deposit tax was passed in 2020 and took effect in 2021, though payment deadlines were postponed. Russians will pay the tax on deposits for the first time in 2024. The tax applies to individuals whose total income from deposits exceeded 150,000 rubles ($1,487) in 2023. A 13 percent tax rate is applied to income under 5 million rubles ($49,580), while income exceeding that amount is taxed at 15 percent.