Authorities want to keep benefits for IIS owners when changing broker

The Ministry of Finance and the Central Bank are developing a mechanism for transferring assets from IIS to another broker without losing benefits. They prepared changes to the tax code,

The Ministry of Finance, together with the Central Bank, prepared amendments to the Tax Code that will allow an investor to save a tax deduction when transferring assets from individual investment accounts (IIA) to another Russian broker, Frank Media reported. The Ministry of Finance confirmed to the publication that now "technical options for the transfer of assets without loss of benefits are being worked out."

We are talking about the transfer of part of the assets from IIS. Banks and brokers subject to US blocking sanctions were forced to transfer foreign securities of   their clients to the accounts of other professional participants in order to reduce the impact of sanctions on their clients. Owners of IIS lost benefits, withdrawing part of the assets from the accounts of banks that fell under the sanctions to other professional participants.

Now, in order to maintain tax benefits, an investor needs to open an IIA with another broker and transfer to it all the assets that are recorded in the IIA, and not just foreign ones. The client has the right to submit an order to the broker to transfer assets from IIS at any time, and the broker must execute it, the Central Bank reported. According to the IIS law, there can be only one, so the agreement on maintaining IIS with the old broker must be terminated within a month.

If an investor closed an IIA, withdrew assets and then opened an IIA with another broker, or withdrew only part of the assets to another broker, he would lose the right to tax benefits. Now the Ministry of Finance and the Central Bank have prepared changes to the tax code that will allow IIA owners to maintain benefits when transferring assets to another broker.

Alfa-Bank's broker allowed to transfer entire IIS to maintain benefits Banking and finance , Alfa-Bank ,  Sanctions , Shares

IIA, or individual investment account, is needed to buy securities and pay less taxes. In RUSSIA, there are now two types of individual investment accounts (IIA) - A and B. Using the first one, you can return 13% of the funds deposited during the year, but not more than ₽52 thousand. The amount from which these 13% will be calculated cannot exceed 400 thousand per year. The second type allows you not to pay taxes on income from transactions. At the same time, there are restrictions - you cannot deposit more than ₽1 million per year into the account.

Investment accounts are popular with Russians: according to the Moscow Exchange, by the beginning of April 2022, the number of opened individual investment accounts (IIA) amounted to 5.4 million. The turnover on IIA since the beginning of 2022 exceeded ₽596.5 billion. 

How to transfer securities from a sub-sanctioned broker to another. Instruction Broker , Interactive Brokers , Investments , Shares

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A financial instrument used to raise capital. The main types of securities: shares (gives the owner the right of ownership), bonds (debt security) and their derivatives. More