OREANDA-NEWS. August 20, 2014. The law №1588-VII came into force, which provides a unified tax rate of 15% on individuals’ income from deposits and current accounts.

Subject to 15% tax:

Income from deposits in banks and credit unions - the interest on the remaining balance of both deposit and card accounts of individuals, regardless of the amount of income received.

Income from savings certificates, mortgage-backed securities, bonds, certificates of real estate funds;

Income from asset management companies.

Not taxed interests accrued on the accounts for the payment of:

Salaries;
Pensions;
Scholarships;
Social benefits.

The Bank acts as the fiscal agent, holds and pays tax on individuals' income to the budget. The client receives the amount of income with the tax withheld.
 
Q: Does the deposits tax apply to the deposits made prior the law came into force?

A: Yes. But this tax will be held only from the income received after August 2. For example, if you put money on deposit on June 1, the interest accrued during June-July is not taxed, and in August it will be already taxed at 15%.

Q: What happens if the customer withdraws a deposit prematurely?

A: In this case, the tax will be recalculated based on the interest rate, provided the terms of the contract for the prematurely withdrawing. Unnecessarily withheld tax will be returned to the bank by reducing the amount of tax to be transferred by the bank for the current or next reporting month.

Q: Do customers need to declare such income and pay the tax?

A: No, all operations on its accrual, retention and transfer will be served by the bank itself. Customers are not required to declare such income, fill out and submit other documents, or to conduct their own calculations on this tax.

Q: Does the bank furnish to the tax service the information about the client, the amount of his deposit, the amount of tax counted?

A: No, the Bank shall transfer amount charged to all customers by a single payment, without disclosing information on individual customers. Bank secrecy is maintained.