Reduction in Key Rate Won't Impact Deposit Taxation According to MinFIN
** Updated Guide on Tax-Free Interest from Deposits**
Want to know how much interest on your deposits is tax-free in Russia this year? Here's a simple breakdown.
As of early June 2025, the Central Bank's key rate stands at 20%. But, don't get too excited just yet! The tax-free threshold for interest on deposits isn't as straightforward as this rate might suggest.
Historically, the non-taxable limit was determined by adding 5 percentage points to the key rate, multiplied by a notional deposit of one million rubles. However, the exact formula may have changed due to recent legislative adjustments, and the official 2025 limit hasn't been publicly announced yet.
By the end of 2025, if the Central Bank doesn't adjust the key rate, the current calculation would result in 210 thousand rubles of tax-free interest income. But remember, this is based on the old formula and may not apply for 2025.
It's essential to keep an eye on updates from the Russian Ministry of Finance or tax service for 2025-specific regulations. As of now, interest on deposits is subject to Personal Income Tax (PIT), but you only pay tax on the portion of interest above the tax-free threshold, which isn't officially specified for 2025 yet.
So, while we can't give you an exact figure just yet, you can count on us to keep you updated on all things finance! Stay tuned to our Telegram channel, @expert_mag, for the latest news.
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Quick Summary:
- The Central Bank's key rate is presently at 20%
- The old formula for tax-free threshold was (key rate + 5%) × 1,000,000 RUB, but it may have changed for 2025
- No official 2025 tax-free limit has been announced, check updates from the Russian Ministry of Finance or tax service
- Interest above the tax-free threshold is subject to PIT, with rates of 13% or 15% depending on the total amount of income
**Stay informed, and stay wealthy! **
In light of the recent adjustments in financial regulations, it's crucial to understand that interest on deposits may still be subject to Personal Income Tax (PIT) in Russia, particularly if they surpass the tax-free threshold. The formula for calculating this threshold has been revised, and the official 2025 limit hasn't been announced yet by the Russian Ministry of Finance.
When making financial decisions in 2025, it's essential to consider not only the interest rates for business and personal-finance offerings but also the potential tax implications, as these factors can significantly impact your net income.
