Politics · Russia · 1 day ago
Proposed Russian tax changes would make banks withhold tax on deposit interest
A Russian government bill proposes changing how tax on bank-deposit interest is collected from 1 January 2027.
Under the proposal, banks would withhold income tax when they pay interest, rather than waiting for customers to pay after receiving a tax notice.
The tax-free limit for interest earned in 2027 would be 160,000 rubles, based on the highest key rate in 2026, which the article gives as 16%.
Each bank would apply that limit without knowing a customer’s deposits elsewhere, so Russia’s Federal Tax Service would combine the information and could seek any extra tax by 1 December.
The proposal could also bring interest income into the same progressive tax calculation as wages, while a regular deposit would not qualify for a special exemption just because its owner is retired.
The changes are proposed, not confirmed as law: the bill was submitted to the State Duma on 30 September 2026, and the article says a separate bill for some groups’ tax exemptions had not received government support.
Proposed Russian tax changes would make banks withhold personal income tax on deposit interest when it is paid, starting January 1, 2027.
The changes are part of government bill No. 617-9, submitted to the State Duma on September 30, 2026.
Banks would calculate withholding cumulatively during the year, while the Federal Tax Service would make the final calculation and could seek additional payment.
For 2027 interest, the tax-free threshold would be 160,000 rubles, based on the maximum key rate in 2026.
The article says the proposal would also combine deposit interest with salary and other income for progressive tax calculations.
- Who
- The Russian government is proposing the changes; banks would withhold tax from depositors.
- What
- A bill would make banks tax agents for deposit interest and change how the tax-free threshold and tax rates are calculated.
- When
- The proposed rules would take effect on January 1, 2027.
- Where
- Russia.
- Why
- The bill would change the procedure for taxing interest on bank deposits. A further reason is Not stated.
This story does not have two clearly opposing sides.
The government submitted bill No. 617-9 to the State Duma.
The proposed changes are due to take effect.
The Federal Tax Service may notify depositors of additional tax due after reconciling information from banks.
- Proposed start date
- January 1, 2027
- Bill
- No. 617-9
- Bill submitted
- September 30, 2026
- Tax-free threshold for 2027 interest
- 160,000 rubles
- Basis for threshold
- 1 million rubles multiplied by the maximum 2026 key rate of 16 percent