At the beginning of April, the head of the State Duma Committee on the Financial Market, Anatoly Aksakov, came up with the initiative to exempt dividends received from personal income tax from personal income tax. The Central Bank supported the idea, the Ministry of Finance then said that the issue was being discussed
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Ministry Finance is not ready to support the exemption from personal income tax (NDFL) of dividends that go to individual investment accounts (IIA). Deputy Minister of Finance Ivan Chebeskov said this on the air of the “Index of the Week” program on RBC TV.
“We have been discussing the issue of tax exemption of dividends for a long time. Still, we came to the conclusion that now, especially taking into account the transformation of the tax system, we are not ready to support the exemption [from personal income tax] of dividends on IIS,” he said.
Chebeskov emphasized that other parameters of IIS, including contract validity periods and tax deductions, will continue to operate without changes.
In early April, the head of the State Duma Committee on the Financial Market, Anatoly Aksakov, proposed exempting dividends on shares of Russian issuers purchased through individual investment accounts from taxes. Now they go to investors minus 13%.
The press service of the Central Bank told RBC Investments that they conceptually support his idea. Chebeskov then told reporters that the issue was being discussed, but “the Ministry of Finance has always had a unified approach to taxation.”
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The idea of exempting dividends received from individual investment accounts from tax was sounded earlier. So, in January, in an interview with RBC Investments, the head of the National Association of Stock Market Participants (NAUFOR) Alexey Timofeev said that the decision to exempt dividends received from IIS from tax could be made “even this or next year.” Timofeev called the very idea of exempting investors from this type of tax correct. He also drew attention to the fact that there is now a ban on transferring income from securities held in IIS to other accounts.
Aksakov also previously came up with an initiative regarding the validity period of IIS-3. Currently, IIS-3 is open for five years during the first three years of the program (from 2024 to 2026). After this, every year his term will increase “ladder”. In mid-March, Aksakov wrote in his telegram channel that the five-year term of IIS-3 may be sufficient and that, perhaps, “the term of IIS-3 does not need to be increased, leaving the possibility of investing for a longer period at the discretion of investors.”
The idea of exempting dividends that go to IIS from income tax was previously supported by the head of the Moscow Exchange Supervisory Board, Sergei Shvetsov. In March 2023, he said that personal income tax benefits for dividends could encourage private investors to make long-term investments.