Bond tax from 2022: new calculation rules

Income tax under OFZ

Federal loan bonds (OFZ) meet several requirements of cautious or just beginning investors:

• Ease of purchase - unlike corporate Russian and foreign securities, the face value of one OFZ is always denominated in a fixed ruble amount: 1000 rubles. Have a few thousand to invest? You can buy OFZ.
• Ease of sale (liquidity) - if necessary, securities can be quickly sold and money withdrawn from the exchange.
• High reliability. With relatively low interest income, the risks of non-repayment of government bonds are minimal.

Until 2022, investors were also interested in investing in OFZs in terms of taxes. According to paragraph 25 of Art. 217 of the Tax Code of the Russian Federation, payments on coupons (interest income) on OFZs were exempt from personal income tax until December 2020 inclusive.

Let us explain for novice investors what coupon income is:

The usual rules were changed by law dated April 1, 2020 No. 102-FZ. The clause exempting income from coupons from taxes has been removed from the Tax Code as of January 1, 2022.

From 01/01/2021, coupon income of individuals on OFZs is taxed in accordance with the general procedure. The tax rate on coupons on OFZ bonds from 2021 for residents is 13%, for non-residents - 30%.

Please note that when receiving income from the owner of the OFZ, you do not need to calculate and remit the tax yourself. This must be done by the broker through whom the funds are transferred.

A Russian investor who has opened a special investment account (SIA) can apply the saved benefit and not pay personal income tax on income from OFZ. More about this later in the article.

Tax on income from municipal bonds

Russian regions and municipalities can also raise funds for their projects by simulating bonds. Until the end of 2020, they had the same personal income tax benefit as for OFZ.

And, just like for OFZ, from 01/01/2021, personal income tax benefits for coupon income under Art. 217 of the Tax Code of the Russian Federation for such securities has been cancelled. Unified personal income tax rules for coupon income taxation have come into force since 2022: 13% for Russians and 30% for foreign investors.

Find out how to take into account the payment of accumulated coupon income on a bond when purchasing it for personal income tax purposes starting from 2022 from the latest clarifications from the Ministry of Finance in ConsultantPlus. You can do this for free by obtaining test access to the system.

Please note that neither the date of purchase of a federal or municipal bond (for example, in the “graceful” period until 2021) nor the date of issue of the paper matters. The day on which the income payment is announced is not taken into account. The only criterion for calculating tax is that the money was received in 2021.

Example

You bought bonds in 2022. At the time of purchase, the personal income tax exemption on interest was still in effect. The coupon payment was announced at the end of December 2022, and settlement was made in January 2021.

That is, you received income already in 2022. He is already required to pay personal income tax according to the amendments to the Tax Code of the Russian Federation that have entered into force.

Let's say you have 100 bonds, purchased for 1000 rubles each, for each you must pay 50 rubles.

Personal income tax from coupons: (50 * 100)*13% = 650 rubles

Total investment: 100,000 rubles.

Your actual income from the operation: 50 * 100 – 650 = 4,350 rubles (4.35%).

Advice from NN experts When choosing areas for investing money, it would be appropriate to make such calculations in advance. For example, if you put your 100,000 in a bank deposit on 2022 terms (for example, at 4.5% per annum), you would receive more income. In addition, because The deposit amount is less than 1 million rubles, you would not have to pay personal income tax.

Investments in microfinance organizations – direct or through bonds

All structures presented in the list have IFC status. That is, they can attract money in the form of direct investments with an amount of at least 1.5 million rubles. It is clear that in the absence of such a volume of savings there is no alternative - only through bonds can they be invested in a loan company.

At the same time, there are a number of clients who can choose. Their preferences depend not only on the rate, but also on other nuances. This is confirmed by the IFC. In particular, Oleg Grishin Fr.

Artem Saratikyan emphasized: “Communicating with lenders, I can say that the type of investment often depends on the convenience of the lender. Those who are accustomed to direct contracts use loans. At the same time, lenders who are accustomed to exchange-traded instruments use bonds to place funds.”

That is, even on the basis of this we can conclude that before choosing, it is worth weighing personal priorities. Moreover, profitability will not always be at the forefront. There is a possibility that a certain advantage will play a major role.

Separately, it is worth noting that the risk in the form of bankruptcy of a market player is the main option for investing in MFOs in both options. Whether it's buying bonds. Or direct transfer of money under a loan agreement to the company.

Tax on income from corporate bonds

Owners of bonds issued by Russian enterprises in 2021 also faced changes in the taxation of their investment objects.

Until the end of 2022, the amount of tax levied depended on the interest rate on the coupon. If it was no higher than 11 percent, personal income tax could not be paid at all.

From 01/01/2021, for tax residents of the Russian Federation who hold bonds of Russian enterprises, the tax on coupon income from 2022 is 13% of the entire amount of payments.

The circumstances of the purchase of a corporate Russian bond do not affect the obligation to pay tax on its coupon in the same way as when owning OFZ and municipal bonds. It is only important that income is credited to the holder after 01/01/2021.

Short-term government bonds

The Russian Ministry of Finance does not issue short-term discount bonds. They got burned at the GKO.

But in many countries they exist. For example, in the UK and the USA. In the USA, zero-coupon loans up to a year are called treasury bills (Bills), from a year - Notes, medium-term bonds. Current information on them can be found on The Wall Street Journal website.

This is what the data and chart look like for a zero-coupon bill for 1 year.

Tax on income from Eurobonds and foreign bonds

The tax on bonds issued abroad continues to apply in 2022. Russian residents owe 13% of the coupon income or discount to the budget (we will also dwell on the nuances of taxation of the discount in more detail below).

When calculating the tax on such bonds in 2022, it remains possible to offset taxes paid in another state against the reduction of Russian personal income tax. This is acceptable if Russia and the country of issue of the foreign bond have an agreement on the settlement of double taxation for individuals.

Example

In 2022, a Russian citizen will receive a coupon on bonds of a company incorporated in the United States in the amount of 1,000 USD. On the payment date, a dollar costs 77 rubles.

In the country of incorporation, a 10% local tax is immediately withheld. That is, the owner of the bond from Russia received:

1,000 – (1,000 * 10%) = 900 USD

There is an agreement between the countries on the avoidance of double taxation, including with regard to taxes levied on individuals. Therefore, tax collected in the USA can be offset against personal income tax in Russia.

Total income: 1,000 * 77 = 77,000 rubles

Full tax amount in the Russian Federation: 77,000 * 13% = 10,010 rubles

Amount of tax paid in the USA to be credited: 100 * 77 = 7,700 rubles

Pay additional personal income tax in Russia: 10,010 – 7,700 = 2,310 rubles.

Additionally, we will mention exchange rate differences that may arise when selling foreign bonds denominated in foreign currency. Exchange differences are considered income for personal income tax purposes in Russia.

Example

A Russian citizen purchased a bond for 2000 USD at a time when the dollar was worth 70 rubles. And I sold it for the same 2000 USD, but the exchange rate on the day of sale rose to 78 rubles.

Investor income subject to Russian personal income tax:

2000 * 78 – 2000 *70 = 156,000 – 140,000 = 16,000 rubles

Personal income tax for additional payment to the budget of the Russian Federation = 16,000 * 13% = 2,080 rubles

Benefits for an individual investment account

An individual investment account (IIA) is a special type of brokerage account. If the conditions of use are met, you can receive special deductions for personal income tax and reduce the tax payable to zero.

Using IIS, you can only operate with securities traded in Russia.

When investing through IIS, special tax deductions are provided:

Important! Deductions under IIS are a separate type of deductions. Their amount depends only on compliance with the terms of use of the account and is not cumulative with other personal income tax deductions (for example, social).

How to claim two personal income tax deductions if in the same year an apartment owned for less than 5 years was sold and an investment account was opened? The question is explained by a Federal Tax Service expert specifically for ConsultantPlus. Find out the answer today by signing up for a free trial access to the system.

Thus, the owner of an IIS can optimize the taxation of bonds and other Russian securities in 2022.

Example with Type A deduction

Kuznetsov A.G. opened IIS in 2022. During the year, he deposited 600,000 rubles into an IIS. With these funds, he bought Russian bonds with a yield of 5% per year. Kuznetsov works under an employment contract, the employer withholds personal income tax of 13% from his salary. For 2022, Kuznetsov earned 700,000 rubles before taxes.

Let’s calculate that Kuznetsov’s income and taxes for 2020 are:

To receive income in the form of a personal income tax refund, Kuznetsov will need to submit to the Federal Tax Service:

• 3-NDFL with a type A deduction reflected in it;
• a certificate from the employer about the salary received and personal income tax withheld;
• agreement on opening an individual investment account;
• confirmation of cash contributions to the IIS (statements, etc.);
• application for a personal income tax refund (please note that the tax will be returned not to the IIS, but to a regular bank account).

You can find even more details on how to get a deduction for an investment account in the ConsultantPlus Situation by signing up for a free trial access to the system.

Important! If Kuznetsov closes the IIS before the expiration of 3 years of use, the right to the provided deduction will be lost. Kuznetsov himself will have to transfer the returned money to the budget again.

Example with deduction type B

Smirnov A.B. - self-employed and pays NAP, not personal income tax. He invests with IIS. Type A deduction is not suitable for Smirnov (there is no 13% tax during the year to deduct anything). Smirnov chose deduction type B.

Let Sidorov deposit 200,000 rubles into an IIS in 2022, 300,000 rubles in 2022, and 400,000 rubles in 2023. He will place all the funds in bonds and choose to credit the income on them to an IIS.

Note! There are two ways to receive income from investment operations with IIS:

1) To the IIS itself with the right to use the money after 3 years;

2) To the owner's bank account. In this option, the broker will deduct the tax on bonds for individuals in 2021 before transferring it to the client’s account. If in the future Smirnov confirms his right to deduct this income, the broker will also return the tax.

In 2023, Smirnov plans to sell all the bonds and withdraw money from the IIS. The same moment will also be the moment of personal income tax calculation (Smirnov chose to credit income to an IIS).

Let everything work out as Smirnov plans.

Before completing work with the IIS, he will go to the tax office and get confirmation there that he did not use the Type A deduction.

Smirnov will give this confirmation to the broker.

Having a certificate from the Federal Tax Service, the broker will not deduct tax from any excess that has accumulated on Smirnov’s IIS over 900,000 rubles over 3 years. initial contributions. That is, all income - from coupons and from the sale of bonds - will be exempt from personal income tax.

Important! If for some reason Smirnov has to close the IIS before the established period of 3 years, the right to deduction will disappear. The broker will calculate and withhold personal income tax on all income received on the account. Smirnov will ultimately receive:

900,000 + (Income on IIS – personal income tax on income)

Priorities of companies for issuing loans

The general concept of the speakers' comments is diversification of your investment portfolio. That is, the use of all possible channels for raising money. For example, Artem Saratikyan said: “The more sources of funding any business has, the better. Direct loans and bonds are equally beneficial for us.”

“Balance is important,” Oleg Grishin . “A large company must have different tools for raising funds, a whole range of opportunities - from loans from physicists to bank financing and corporate bonds. All of these methods of raising money have different pitfalls and risks.”

“For example,” he added, “private investors are susceptible to panic; we are not protected in any way from the threat of mass early termination of contracts. Bonds have another problem - the utilization of received funds, so we immediately receive all the money in one package and must immediately begin paying interest on it. Banks can also request a loan ahead of schedule; the structure of the transaction with them is more complex - we need collateral, guarantees, and requirements for maintaining covenants.”

Yakov Romashkin noted the maintenance of balance : “The structure of liabilities in the company is diversified through the channels of bond loans, bank financing and direct investment through a loan agreement with a significant amount of equity capital. In long-term planning, our company tries to maintain a balance between these channels in certain proportions in relation to assets.”

Roman Makarov also stated that it is worth using all channels : “Speaking in general about the market, I will note that, in our opinion, funding channels will still remain varied: direct investment, bank loans, bonds, shares.”

It can be noted that all options for obtaining money for MFOs have advantages and disadvantages. This was noted by Yakov Romashkin : “By issuing bonds, the company knows exactly the repayment schedule for the years ahead and can competently generate cash flows. The advantage of direct investment for a company is the ability to raise money for specific tasks “here and now.”

Taxation of bond discount

In addition to the taxation of coupon income from 2022, the obligation to calculate the discount tax remains for this year and beyond.

Let us remember that a discount refers to the difference between the sale price and the purchase price of the paper. Since this instrument is traded on the market, its price may change as a result of trading, just like other securities.

A positive “income” discount is subject to personal income tax. For example, if a bond was purchased for 1,000 rubles and sold for 1,100 rubles, the taxable difference will be 100 rubles. And if a paper purchased for 1000 rubles had to be sold for 900 rubles (the current price below the face value is also quite possible), then the difference of 100 rubles is not subject to taxation.

The positive difference from transactions with bonds (as well as with other securities) is subject to personal income tax at regular rates.

MFO bonds – summary

It is clear that any investment instrument has its own risks. At the same time, in the case of companies issuing loans, they are actually identical - both in terms of direct transfer of funds to the structure and in the purchase of securities. At least for the current time in 2022. After all, the main thing is that the borrower does not become bankrupt.

“Investing in IFC through bonds, rather than through direct investment of funds, looks more reliable,” summed up Roman Makarov , CEO of the company, which has not currently entered the securities market.

“Firstly, when a company enters the public market, it undergoes a certain procedure of checking its financial condition. Secondly, bonds are more accessible, since the minimum investment volume for direct investment is limited to 1.5 million rubles, and the price of one bond is on average 1,000 rubles. Therefore, the share of individuals among bond holders is about 70%.”

“On the other hand, although we can talk about approximately the same profitability of the two investment methods, for individual companies there is still a difference of 2-4% in favor of direct investments.”

Sources:

• Comments from IFC representatives;
• Moscow Exchange - link.

about the author

Dmitry Sysoev - higher education in economics from Sumy National Agrarian University with a degree in Organization Management. Analyst of the banking sector and microfinance market. Experience working in specialized commercial structures - both banks and microfinance organizations. For more than 5 years, he has been creating useful content for consumers of financial services and organizations - information and analytical articles on the banking sector and the microfinance market. [email protected]

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How do investors report in Russia?

All investment income can be divided into those received from sources that bear obligations as a tax agent for income tax, and from those who are not obliged to comply with the laws of the Russian Federation regarding withholding taxes for individuals.

Usually, if income is paid by a Russian person (company, broker), then he has an obligation to withhold tax from the payment and transfer it to the budget of the Russian Federation.

If the payer of the income is a foreign person, then (as we saw in the example above) he will withhold taxes due in his country, and will not make calculations with the Russian personal income tax.

When personal income tax is withheld immediately at the source, and the owner of the bond has received a payment reduced by tax, the owner does not need to take any further action.

If the income on the bond came from a non-resident, then the Russian owner who received the income is obliged to calculate and pay tax in his own country.

Beginning in 2021, bonds tax declarations for individuals must be made no later than April 30 of the year following the reporting year. But only if there is tax not withheld at source (for transactions with foreign securities).

Such personal income tax must be paid before July 15 of the year in which it is declared.

But you can declare a deduction under IIS within 3 years from the year in which such a right appeared.

If you lose the right to already claimed deductions, you must also declare this by filing a 3-NDFL. The document must show the withdrawal of previously received deductions and the amount of tax that needs to be returned. Such a report must be submitted within the same time frame as 3-NDFL with additional tax - before April 30 of the following year. And you must pay before July 15 (as in the situation with independent tax calculation).