I.50. Taxation of trading. Refund of taxes from trade. IIA (individual investment account). Peculiarities of taxes on foreign assets trading.

It’s a boring topic, but every trader should understand what to do with this issue in order not to receive a court decision on an administrative violation somehow unexpectedly.

Existing taxes (13% of income or 30% of income on American stocks) from profits will be collected from you by a broker as a tax agent. There is no need to worry about this, the main thing is to always leave some money on the account so that the broker can write off the required amount.

A more interesting topic is the refund of taxes from trading on the stock exchange or the legalized form of not paying taxes at all. This is done with the help of an individual investment account of type B.

The deduction for income under the IIA (type B) is a type of tax deduction in which it is possible to exempt all income received under the IIS from paying a tax of 13%. This deduction can be obtained only when the account is closed and not earlier than 3 years after its opening. Unlike type A IIA, Type B IIA allows you to completely avoid paying taxes and does not have a limit of 400,000 rubles like type A IIA. Simply put, you can save more than 52,000 rubles if your income exceeds 400,000 rubles. The only thing is to carefully read the terms of the IIS, take into account the validity period of the IIS in 3 years. You cannot withdraw money from the IC for 3 years (including profit) if you want to receive a tax deduction. One trader can have only 1 IIA account to fulfill the conditions of the IIA.

When working with dividends on foreign shares, some features should be taken into account. Such income is taxed in the country in which the issuing company is located.

If less than 13% was withheld abroad, then you need to pay additional tax in Russia — up to the rate of 13%. If the tax in another country is more than 13%, then you do not need to pay anything — but the income must be indicated in the declaration in any case.

On dividends from American shares, the American side will withhold the tax on dividends in the amount of 30%, the dividends will come after deducting this amount. However, if you sign the W8-BEN certificate, the USA will retain 10%, and the remaining 3% will need to be paid to Russia.

Many investors do not sign the W8-BEN certificate in order not to file a declaration. But according to the law, the declaration must be filed in any case, even if 30% of the tax was withheld from the investor.

The investor must submit a declaration by April 30 for the previous calendar year. You need to pay at your place of residence no later than July 15 of the same year. For example, in April 2021, you need to file a declaration of income for 2020. The declaration can be submitted both in writing and electronically on the tax website.

If you bought a currency on a brokerage account, and then sold it and received income, then you are obliged to independently pay 13% of the profit tax to the Federal Tax Service by submitting a declaration. Owners of the second type of IIA (type B) are exempt from paying personal income tax. There are no restrictions on the refund amount.

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