Each of us sometimes raises the question of what to do with the money we earn. The interest on deposits is small, barely covering inflation. Banks are deprived of licenses and there are problems with the return of acquired overwork. Exchanges scare with their mystery. The words "margin" and "spread" cause mystical horror.
Since 2015, Russia has earned a new tool for profit. These are individual investment accounts. They are suitable for beginners and professionals, promise 15-20 profits. One of the advantages of such an investment is the receipt of a tax deduction of IIS.
What is IIS
An individual investment account is a special trust account of an individual. It has tax advantages and some restrictions. The client entrusts his money to the management of brokers or banks. Credited money can be used in the stock market for profit. IIS has the following features:
- Each can have only one investment account.
- Tax credits are eligible only after 3 years.
- The maximum validity period is unlimited.
- IIS can be closed at any time. In this case, tax benefits cannot be used.
- It is allowed to partially withdraw funds.
- Validity is considered from the moment of opening. You can simply open an account and deposit money later.
- The maximum amount for IMS is 1 million rubles. But for deduction, only 400 thousand rubles are taken into account. The maximum possible amount will be 52 thousand rubles.
- IIS provides an opportunity to earn on the purchase of various assets, stocks, bonds. Or you can just limit yourself to a tax deduction.
The state supports IIS in order to increase the flow of resources into the economy. In addition, they should stimulate the population to accumulate, to create airbags. And long money is the most important resource. Trading IIS funds is possible only on Russian sites.
Types of tax deductions
Investors are offered two types of tax deductions, for contribution and for income. Which species to use is up to you.
A deduction for the contribution offers a tax refund of 13%. The maximum amount with which the benefit is accrued is 400 thousand rubles.
Money is paid next year for the year when the payment was made, but not earlier than 3 years after opening the account. If brokerage profit is received during the existence of the account, then taxes must be paid from it. If you received a deduction and closed your account without paying tax, you need to pay it later. Otherwise, a large fine is possible.
This type of deduction is suitable for officially working people who pay personal income tax and do not conduct active market activity.
IIS Features
A deduction on income exempts the owner from taxes on profits earned using the IIA. There are no restrictions on the amount in this type of deduction. Taking advantage of this is beneficial for people who receive significant income.
Compared to a regular deposit, IIS is undoubtedly more profitable if you plan to invest for a long time. Banks are constantly reducing interest rates. If the rate is 5% higher than the rate of the Central Bank, then dividends from the deposit are also subject to taxation. IIS have benefits that can significantly increase your income. IIS tax deduction is one of the benefits.
Many are afraid of the long term of three years, for which it is necessary to open a deposit. But we must remember that you can open an account in advance without investing a dime. Then, when free money appears, you can invest it. Three years will be considered from the moment of opening
IIS tax deduction
In the first quarter of this year, it is required to file a declaration on your accounts to receive a deduction for the past year. IIS allows you to receive a deduction of 13% on personal income tax from the invested amount. To do this, you need to understand what to do to design it. This is a simple procedure and does not take much time.
IIS tax deduction documents
To obtain a deduction, you must have the following documents:
- Application for deduction.
- 3NDFL declaration.
- Register of documents.
- Help 2NDFL from the employer.
- Papers from a broker on the opening of IMS and the availability of money (agreement, receipts, reports).
Declaration
First you need to make a declaration of the investment account. To do this, there is a program on the tax inspection website that will help you do this quickly and not make annoying mistakes. Installing it on a computer is very simple.
After installation, you need to fill in all the necessary sections. Initial conditions are set by default. The number of your tax office can be determined by the area of residence in the drop-down list or found in the search engine.
The next step is to fill in the information about the declarant. If this is not done, then the program will remind you of this.
All necessary sections are filled, otherwise it will be impossible to move on.
The OKTMO code, which must be entered, can be found on the website of the tax inspection at the appropriate link.
The next step is to fill in the information on income received over the past year.
Here you must specify the source from where the payments were made. We indicate the name and details of the employer and mark the option for calculating standard deductions. If there were several employers in a year, then all are indicated.
Revenues must coincide with the amount in the certificate 2NDFL to the penny.
Fill out the standard deduction form
In this tab, you need to specify what is right for you. If you have social (for charity, treatment and education) and property deductions, then the corresponding tabs are filled.
After that, we proceed to the form "Tax deduction of IIA".
Of the four subsections, you must choose the one that relates to the investment deduction. Next, you need to enter the amount you paid for the past year.
All information must be checked and if everything is printed correctly. In printed form, this will be about 6 pages on standard forms.
Step-by-step instruction
Summarizing all of the above, we determine the sequence of actions for obtaining the tax deduction of IIS. Below is a step-by-step guide.
Step-by-step instructions for the tax deduction of IIS:
Step 1. We receive a 2-personal income tax certificate from all employers (originals).
Step 2. We receive documents from the broker.
Step 3. We prepare the tax return 3-NDFL.
Step 4. We write a deduction in duplicate. One is given to the tax office, and the second, with the signature of the inspector, remains with you. Forms can be downloaded online or obtained from the tax office. It is necessary to know the details of your account to which the funds will be credited.
Step 5. We draw up a register of documents in duplicate. One copy remains in your hands, the second is given to the inspection.
Step 7. We form a package of documents and hand it over to the tax office. If there are additional tax deductions, then we include there contracts and documents for treatment, education, purchase of real estate (copies).
Step 8. We submit documents to the tax office.
IIS Benefits
IIS appeared only in 2015. For most customers, this is exotic. We are used to using bank deposits. At first glance, they are very similar, but there is an important difference. When we place money on deposit, the bank promises a fixed percentage. This percentage directly depends on the Central Bank rate, and now basically fluctuates around 8%. Banks offering prohibitive interest rates are unreliable, you should not contact them.
IIS can be managed in different ways. If you do not want to take risks, you can use the risk-free scheme, place money on the IIS and make a profit in the form of a tax refund.
If you make large transactions in the market and receive a large income, then the second type of tax benefits will completely free you from paying them. No need to hide your profits. IMSs are supported by the state, which guarantees their reliability.
How many times can I get a tax deduction for IMS? It depends on which type of tax benefit you decide to take. One type allows you to get a tax deduction annually. The second type is generally exempt from income taxes when the account is closed.
What tax deduction when opening IIS you choose is up to you.
Choosing a broker to open IIS
An individual investment account has clear, legally prescribed rules that are the same for all participants. Brokers get the opportunity to compete, only offering additional services and amenities for investors. Therefore, when choosing a company, you need to carefully consider what it represents and what it offers. Reputation in the financial sector is of great importance.
You need to know how long it has been on the market, whether there are necessary licenses, whether there were scandals and complaints. In addition, you need to ask:
- The convenience of opening an account.
- Convenience of the organization of work (availability of communication with a broker, terminals, etc.).
- Access to various financial instruments.
- The cost of the service.
- The ability to transfer profits to a bank account.
- Minimum down payment amount.
- A variety of ready-made solutions.
Answering these questions will help you make the right investment choice.
Cost of service is an important feature. You can evaluate its benefits only by knowing exactly how you intend to use IIS. In one case, it can negate your profit, in another - it can turn out to be very small.
How easy it is to open an account, is it possible to do it remotely or you must go to the bank, is also important. This is especially important for small cities, where the broker's representative offices may not exist.
A money withdrawal organization may provide a legitimate opportunity to receive income ahead of schedule.
We hope that the article on IIS, tax deduction, will allow you to make the right choice.