Are you planning to open an IIS? But you doubt it a little. And you think - do I need this? Get involved in this program from the state. There must be a catch somewhere. Or is everything fair?
You will learn about all the advantages and, most importantly, disadvantages of individual investment accounts. Hidden or pitfalls. And is it possible to bypass them? Nuances of use. And you will understand the benefits or disadvantages of opening an individual investment account.
Let's compare the profitability received with deposits in banks. To understand with specific numbers whether there is a benefit from using IIS. And is it worth opening an account?
So let's go!
IIS - advantages
Let's start with the positives, naturally. We will “lick” the IIS from different sides. Sticking out all his advantages.)))
Tax benefits
The most important advantage of an IIS, the reason why it is worth opening it, is the possibility of obtaining tax benefits.
The IIS owner has two options to choose from:
- State refund of 13% of the amount deposited into the account
- Exemption from taxes on profits received from investments.
We discussed which type of account to choose on an IIS in.
But in short, for the vast majority, in terms of “profitability”, type A or a return of 13% from the state is suitable.
You can think of this as a guaranteed additional return on your investment.
What does this give us?
You deposited 100 thousand rubles into an IIS. And with this money we bought federal loan bonds with a yield of 8% per annum. In a year you will earn 8 thousand in the form of a bond coupon. And you will receive another 13 thousand as a tax deduction.
In total, in the first year alone, using an IIS, you are guaranteed to receive 21 thousand or 21% per annum.
Introduction to the stock market
Opening an IIS is a great opportunity to get to know the stock market better. In the eyes of the majority, trading on the stock exchange seems to be the domain of professionals. And ordinary people have nothing to do there. Significant capital, knowledge and experience are required.
No one is actually forcing you to actively trade. Conduct analysis and selection of securities. Constantly monitor market conditions.
It is enough to buy the necessary papers once and you can practically forget about them. It's like a deposit in a bank. Having placed money on deposit in Sberbank, you won’t constantly check, calculate profitability and move money from one bank to another? Surely not.
It's the same on the stock exchange. There are long-term investments based on the “ “ principle. For example, bonds that provide fixed income to owners for many years. You only need to buy them once. That's all. This concludes your participation in trading.
Higher profitability
You can earn more money in the stock market if you compare it with classic investments in deposits.
We won't talk about shares. This is for the pros. And for beginners, investing in bonds is ideal. Especially state (OFZ) or municipal ones.
When buying bonds on an IIS, you will receive a fixed, pre-known income. At the time of writing, the most reliable government securities provided a yield of 8% per annum. The yield on corporate bonds is 1-2% higher.
Can you find such an annual percentage in banks when opening a deposit? For example, Sberbank offers rates of 4-4.5% per annum. In the most reliable banks from the TOP-30 you can still find 6-7% per annum. And even a little higher. But the conditions for opening most deposits are very strict - usually, to receive the “high” promised interest, an amount from several hundred to 1-2 million is needed.
What does a difference in profitability of 1-2% give? It seems like nothing at all. A pathetic extra percentage. Well maybe two.
Let's look at it from a slightly different angle. You can receive 6% per annum on your deposit. And for bonds 8%. From an investment of one hundred thousand we have 6 and 8 thousand rubles in profit, respectively. In the second case, our income increased by 33%.
Or by opening a deposit for 4 years, you can earn 24% profit. Bonds will bring the same amount, only in 3 years!!!
Possibility of providing yourself with passive income
In recent years, the expression “passive income” has become almost a dirty word. Let me rephrase - a monthly, quarterly or annual constant source of profit.
Here we are talking about bonds and dividend stocks.
The beauty is that when buying securities you don’t have to do anything else.
All these state and non-state pension funds are of course a good thing. But in practice, most of them show not very impressive results. Many even work negatively. And the average annual yield is at the level of rates on bank deposits.
Moreover, the funds invest the money of future retirees in the same instruments traded on the stock exchange. Primarily in bonds. Which you can buy yourself. Without the help of pension funds.
The benefits are obvious:
- The fund charges fees for its “management.” A little just 1-2%. We looked at what this difference leads to in the example above.
- Funds need profitability indicators. To have something to provide as statistics to potential clients. To achieve this, they are forced to invest money in more aggressive instruments with increased profitability. And this doesn’t always work out. In 2017, having grabbed such “profitable” securities, many were faced with a technical one. And the money was crying. And many NPFs even suffered losses at the end of the year.
Eternal extra income
Of course, we’ll put the word “eternal” in quotation marks. But while the IIS program is in effect, you can receive your 13% every year.
The validity period of the investment account is not limited. And as long as you deposit money, you are entitled to deductions. And this is an additional and most importantly guaranteed profitability.
Many people have the belief that the lifespan of an IIS is 3 years. And after this period it must be closed.
I’ll add on my own – 3 years is the minimum term. The top bar is not limited. Until the law is repealed (or changed).
Therefore, for now we are using and surviving profitability to the maximum.
IIS - disadvantages
Here you go. We have sung the praises of IIS from all sides. Now let's pour some ointment into this barrel of ointment. How much it will be - a small spoon or a whole bucket is up to you.
Freeze for 3 years
When opening an IIS, you cannot withdraw money from the account until the end of the 3-year period. This is probably the biggest drawback of investment accounts.
But there is a slight misconception or misunderstanding here.
Firstly, you can withdraw money at any time. Another thing is that in this case the right to receive 13% as a deduction will be lost.
Secondly, the validity period of the IIS does not begin from the moment funds are deposited into the account. And from the date of conclusion of the contract. But when to deposit money (immediately, in a month or a year) is your right. Therefore, there are several ways to reduce the period of time that money remains in an IIS.
You can test it with a small amount at the beginning. To familiarize yourself with the principles of purchasing securities on the stock exchange. And the main amount can be deposited in the 2nd or even the last year of the IIS.
As a result, the period is reduced to 1-2 years. And you have all the same tax refund benefits.
Unofficial or small income
To receive a 13% tax deduction, the owner of the IIS must have official income. On which all taxes have been paid. After all, a tax deduction, simply put, is a tax refund. How much you paid to the treasury is how much you can get back. At least not anymore.
If there is no income, or it is very small, then you will have to choose the second type of IIS or type A. But it does not shine with “profitability”.
The second point follows from the first. If you are eligible for tax benefits under other programs (primarily mortgages), then you will be able to use the IIS refund only to the extent of the remaining amount.
For example. During the year, 100 thousand was paid (withheld) in taxes. And there is a mortgage that can pay back this entire amount. Is it then necessary to open an IIS? Probably not. You still won’t get any benefits from opening an IIS. But if you still want to try and feel the stock market with your own hands, open a regular brokerage account.
Which is not subject to freezing for 3 years.
Only one deduction
The deduction can only be received once for the amount of funds deposited.
Brokers mainly “promote” high returns on IIS by promising 25-30% per annum. But even so. We are talking only about the first year of validity of the IIS.
They deposited money. Invested in bonds. We received a deduction. And then the income will come only from your investments.
As a result, the increased profitability from receiving 13% is, as it were, “spread out” over 3 years. And on average it will be +4.33% to the annual annual profit.
Next year, when you deposit funds, the profit from the deduction will last for 2 years. Here we have +6.5% profit.
For the last year, they donated money and received +13% in full.
The stock market is a risky investment
Indeed, investing in the stock market, especially stocks, is risky. You can both earn and lose. Naturally not all. But only a part. But it’s still somehow unpleasant.
But no one forces you to buy shares. There are fixed income debt securities. Both government and corporate. If we talk about corporate ones, then only the securities of the largest companies: Sberbank, Gazprom, Lukoil, Rosneft. By thinking, no one will have the idea that they are unreliable.
By purchasing reliable bonds, we eliminate the risk of default (or at least reduce it to almost zero).
Preparation of the declaration
The money itself in the form of a 13% return will not fall into your hands. To obtain a tax deduction itself, you need to spend time. Collect all the “papers”, fill out a declaration and submit it to the tax office.
For those who have never encountered this, it sounds very troublesome. Collect something, fill something, carry something.
Consider taking a deduction as payment for “paperwork.”
Other nuances
You need to spend time at least understanding the basics of the stock market. How and what to buy. Where to see profitability. How to choose more profitable securities to buy. In some cases, you need to understand the trading program.
Many brokers already have the ability to purchase securities through their own online applications or personal account. There, the main procedure comes down to just pressing two buttons “Buy” and “Sell”. Making the stock market clearer and closer to novice investors.
Broker commissions
When opening an IIS with a broker, you will incur additional costs. A broker is an intermediary between you and the exchange. And he charges a pretty penny for his mediation.
How many? The commission itself is negligible, especially if you do not plan to actively trade. Deposit money into an IIS, buy bonds and hold them until the end of the term. Pay only for 2 operations: purchases and sales.
On average, commissions vary from 0.1% (very expensive) to 0.01% of the transaction amount.
To make it more clear, let's look at the numbers.
You deposited 100 thousand into an IIS and bought all the bonds. And so every year. Deposit 100,000 rubles. By the time your IIS ends, you decide to sell everything and withdraw funds.
How much will you pay the broker for these operations? Purchase: 3 times 100 thousand. And the sale is 1 operation per 300 thousand. The total trade turnover on the account will be 600,000 rubles.
Your fee to the broker is from 60 rubles (with a commission of 0.01%) to 600 rubles (with an expensive commission of 0.1%). On average, focus on 0.05-0.07%.
A much larger cost factor is the monthly brokerage fee. You need to choose brokers who completely lack it. Otherwise, you will have to pay 100-200 or even 300 rubles monthly.
IIS is not insured
We are accustomed to the fact that bank deposits are insured by the DIA in the amount of 1.4 million rubles.
How are things going with IIS? No insurance. It’s scary to give money to “it’s unclear to whom.”
Don't panic. All funds, or rather purchased securities, are not stored with the broker. And in a special repository - depositories. All bonds and shares nowadays are in book-entry or electronic form. And the right to own papers is indicated by a digital code or an entry in the register.
If the broker goes bankrupt, all your securities will be kept in the depository. All you need to do in this case is switch to another broker. And continue trading through it.
Do not forget that the broker only provides access to the exchange.
In terms of reliability, federal loan bonds will surpass any bank. Payments are guaranteed (especially to individuals). The only reason why you may not receive money is a state default.
In 1998, Russia defaulted on its obligations. Simply put, she stopped paying her debts. Including bonds. But...OFZ owners, individuals, citizens of the Russian Federation, received all the money in full. Only non-residents and legal entities were targeted.
We calculate and compare profitability
In the end, I would like you to use a clear example to understand the benefits of the IIS program.
Let's compare, using real figures and examples, the final profitability of IIS and bank deposits for a period of 3 years.
For example, let’s assume that every year you will deposit 100 thousand rubles.
Bank deposit: in a reliable bank you can open a deposit at 6% per annum. For calculations we will use .
We get in 3 years we will have 337,461 rubles in our account. Net profit - 37.46 thousand or 12.5%.
According to the IIS program. We will buy the most reliable OFZ bonds with a yield of 8% per year.
After 3 years we have 350,611 rubles. Net profit 50.6 thousand or 16.8%.
As you can see, even without applying the tax deduction, investments in bonds gave 1.35 times more profit. This information is for those who doubt whether they can keep the money in their account for the full 3 years.
In 3 years we will be able to receive 3 deductions of 13 thousand or 39 thousand rubles.
As a result, this will give us almost 90 thousand rubles.
If the received deductions are deposited back into the IIS and invested in bonds, we will have double income. With the “new money” we will again be entitled to 13%. A little more than 5 thousand. And profit from investments in bonds. True, the investment period is reduced to 2 years (we will receive the first deduction in the 2nd year, the second deduction only in the third). But we will have time to earn an additional 3 thousand.
Over the three years of IIS operation, we will earn a total of 99 thousand rubles, taking into account deductions and reinvestment, or 33% of the deposited amounts.
Compared with the result on the deposit (12.5%), the profitability on IIS is 2.64 times higher!!!
Last update: 04-01-2020
How does IIS work?
There are two types of benefits in total.
Each IIS owner can use only one:
- Class A benefit– obtaining a tax deduction for personal income tax. persons if the first payment was made at least three years ago. This option is suitable for those who have a regular income, which is subject to income tax, and also do not want to take risks. In other words, you can return the 13% that your employer withholds from your salary.
- Class B benefit– refund of income tax in full in the form of a tax deduction, if the first payment was made at least three years ago. A person receives a deduction when closing an account (the account can be closed earlier, but in this case the tax deduction will not be paid). This option is well suited for those who trade in the stock market and do not have a regular salary. In other words, if you earned a large amount, you may not have to pay taxes on it.
See the next paragraph for an example.
How profitable is it and how much can you earn - profitability, dividends?
Let us now consider several examples of using IIS:
- Taxpayer Ivanov In 2015, I issued an IIS (according to the personal income tax return scheme). In 2015, a person received a salary of 500,000 rubles, from this amount he paid income tax in the amount of 65,000 rubles (13%). He opened an individual account and put 300,000 rubles there. Thus, he will return 39,000 rubles (13%) as a deduction.
- Taxpayer Sidorov in 2013, 2014 and 2015, I deposited 100,000 rubles into IIS (under the income tax exemption scheme). He carried out various operations on the stock market and in 2016 his balance amounted to 1,000,000 rubles. In other words, the person made a profit of 700,000 rubles. In this case, upon termination of the contract, he will not have to pay income tax on these 700,000 rubles.
What is the difference?
You can be guaranteed to receive a class A benefit; a class B benefit depends on whether you managed to earn it or not.
Is it more profitable to invest money in a bank or in an IIS?
There is no clear answer. It all depends on the specific situation. It is important to understand the following points:
- If you have been successfully trading on the stock exchange for a long time, then you should definitely open an IIS. After all, income tax will eat up a large amount of money, and with the help of an IIS you can avoid this situation.
- If you receive a salary, then it all depends on what interest rate you can deposit money in the bank. If the bank offers a good interest rate, then it may be more profitable to put the money in the bank.
- However, a high interest rate may indicate that the bank is experiencing certain difficulties and may close (deposits are insured for 1.4 million rubles).
- The tax refund is guaranteed by the state.
- So far, IIS is not insured, unlike deposits in banks.
- To receive the maximum benefit, the money must remain in the account for 3 years.
Eg, for amounts up to 300,000 rubles you can get by quite well Tinkoff Black debit card. It is also convenient to use the interest rate at the level of deposits in many banks (in most cases 1-3% higher).
How to open an IIS?
Currently, many financial I offer this tool to organizations. There are no difficulties, just pay attention to the investment strategy. High interest means high risks.
Rating and where is the best place to open?
You can obtain an IIS from an investment or management company, as well as from banks that engage in trading on stock exchanges.
A few examples: PJSC Sberbank, PJSC VTB 24, JSC Finam and so on.
- PJSC Sberbank – 68,971 accounts.
- JSC “FINAM” – 38,693 accounts.
- Otkritie Broker JSC – 36,202 accounts.
- LLC “Company BKS” – 31,685 accounts.
- PJSC VTB 24 – 13,598 accounts.
- ATON LLC – 8,287 accounts.
- Alfa Capital Management Company LLC – 7,839 accounts.
- PJSC Promsvyazbank – 3,709 accounts.
- JSC Gazprombank – 3,399 accounts.
- LLC FC “RGS Investments” – 2,996 accounts.
How many IIS can I open?
Only one IIS can be opened per investor (according to No. 39-FZ, Article 10.2-1, paragraph 2). If a person opens a new IIS, then he is obliged to close the old one within a month.
Conditions and tariff of IIS
Important! The figures in the tables are provided as an example and may change over time. For current information, see the official websites.
Below is an approximate sequence of steps that will need to be taken to open an IIS in the largest banks of the Russian Federation.
For example, to open an IIS in Sberbank, you need to do the following:
Sberbank tariffs:
To open an IIS at FINAM JSC, you need to do the following:
- Prepare all the necessary documents and register on the site, indicating your real personal data. When registering, you must indicate that you are registering under the IIS program. You can also visit one of the representative offices of FINAM JSC to open an account.
- Company representatives will review your application and make a decision.
- If your application is approved, then you can transfer money to your account and start trading.
Tariffs of JSC “FINAM”:
What documents are needed?
To open an IIS in Sberbank, you need to provide the following documents:
- Passport and TIN (but only if you do not have a universal account with Sberbank).
- Application and questionnaire.
- Any other documents at the request of the bank related to commercial activities. Example - the bank may require you to write a receipt that you no longer have an IIS or you have another IIS, but you undertake to close it within the next 30 days (since you can use no more than one IIS per billing period).
To open an individual investment account at JSC FINAM, you will need the following documents:
- Passport and IIN.
- Any other documents at the request of the organization related to commercial activities. Example - the company may require you to write a receipt that you no longer have an IIS or you have another IRA, but you undertake to close it within the next 30 days (since you can use no more than one IRA per billing period).
Agreement for opening an individual investment account
When opening an IIS in any financial institution, an agreement is concluded.
If you open an IIS online, then you are provided with an electronic version of the agreement; if you agree with it, you confirm it, and the contract will be considered signed.
The texts of contracts of different companies in most cases differ slightly from each other; differences may relate to such items as the size of the commission, the ability to trade on foreign stock markets, and so on.
Insurance
Today it is impossible to insure an IIS.
However, in June 2017, the government supported a bill according to which it would be possible to insure the personal investment account of individuals.
It is assumed that the Deposit Insurance Agency will handle the payments. It is expected that IIS insurance will become operational in 2018, but it is quite possible that the bill will be rejected or returned for revision.
How to top up?
To top up via Sberbank, you need to contact a bank branch, provide the amount and say that you want to deposit it in an IIS.
You can also top up using online banking, and then transfer the money to IIS. The translation from the card looks like this:
- Go to Sberbank Online.
- Open the “Payments and transfers” item, select “Investments and insurance - brokerage accounts”, then open “MICEX Stock Exchange”.
- Now you need to indicate the card from which the money will be debited, and also indicate the 5-digit code that is issued after the conclusion of the IIS.
- Click “Continue”. Now the money will be transferred from the card to the IIS within 24 hours.
Clients of FINAM JSC can replenish their account in the following ways:
- At specialized ATMs.
- In all branches of the company.
- Transfer from a card (VISA, Mastercard, etc.).
- In some mobile stores (Beeline, MTS and so on).
- Using the special Rapida application.
- Replenishment using QIWI.
How to close an IIS?
You can close your IIS at any time.
In most cases, to do this, you need to contact your company/bank and write a statement that you want to close your IIS (some organizations allow you to close your account online).
However, you need to remember that the IIS must be valid for at least 3 years; if you close it ahead of time, then you will have to return tax deductions back to the budget (if you have not received them yet, then you will lose the right to receive them).
Personal income tax refund and documents for tax authorities
An approximate plan with which you can get a tax deduction on contributions:
- At the end of the tax period, submit an electronic declaration to the tax service using Form 3-NDFL. In the declaration, check the box next to “Tax deduction” and indicate the entire amount of money that went to your IIS.
- You also need to submit documents to the tax office confirming receipt of income taxed at a 13 percent rate and the fact of accrual of funds.
- Write an application to the tax office for a refund. The application must indicate the bank details where the money will be transferred.
An approximate plan with which you can get a tax deduction on income:
- Write an application to the tax service so that it provides you with a document confirming the fact that you did not use tax deductions on the IIS during the entire period the money was received.
- Provide your broker with this certificate; Now, when paying out money, the broker will not withhold income tax in favor of the state.
Advantages and disadvantages
Pros:
- Tax deductions are guaranteed by the state. Money can be deposited in a bank, but banks often go bankrupt, while tax deductions are not paid by the bank, but directly by the government. This increases the reliability of deposits.
- You can choose a benefit depending on how you earn money. Everything is simple here - if you receive a salary, then you use one tariff, but if trading on the stock exchange is your main area of activity, then you use a different tariff.
Minuses:
- If you close your IIS ahead of time, you will have to return all tax deductions. Of course, money can be withdrawn from the IIS at any time, but this will actually constitute a failure to fulfill obligations to the state, so the money will have to be returned.
- You can put money in the bank at a higher interest rate. If you receive a salary, then it does not always make sense to put money into an IIS (although tax deductions from such deposits are guaranteed by the state and they will be paid even if the bank goes bankrupt).
The introduction of the IIS insurance system stimulates the influx of retail money. However, in order to avoid misunderstandings among private investors, it is necessary to clearly define the rules at the start of the system.
At the end of June, deputies adopted in the first reading a bill on creating an insurance system for investments placed in individual investment accounts (IIA). The system is expected to be operational in 2018. According to the bill, securities and funds placed on IIS will be insured. The maximum amount of payment for investment insurance will be 1.4 million rubles, the same as for depositors of banks that have lost their license.
The experience of implementing a deposit insurance system in the banking industry has shown that this can increase the confidence of retail clients and stimulate the flow of money into the banking system. At the same time, such a guarantee system creates certain risks of fraud or improper motivation of clients. Until now, regulators are fighting several types of scammers. Firstly, with the so-called deposit crushers (breaking up deposits exceeding the insurance compensation threshold and transferring funds from them to the insured accounts of others in anticipation of a bank collapse). Secondly, with “notebooks” (creation of fictitious deposits that are only on paper, fraud on the part of banks). Thirdly, with the replacement of uninsured deposits with insured ones (deposits of legal entities with deposits of individuals).
Most of the risks mentioned are not relevant for the investment insurance system. An investor can receive a tax deduction for IIS once every three years. Theoretically, an investor can open accounts for family members and friends, but this requires spending a lot of effort, time and money - which will have to be created on the IRA of family members and friends. IIS is an exclusively retail product, so it is impossible and inappropriate to replace any corporate solutions with them. The only potential risk for IIS is “drawing” fictitious investment accounts. However, even here it is possible to quite simply identify the real IIS through which transactions are taking place, and passive accounts opened shortly before the collapse of the management company or depository.
In the banking sector, there is also the problem of so-called serial depositors, who, in search of deposits with high rates, are “exposed” to several bankrupt banks. But this is not a type of fraud, but simply choosing the most favorable conditions for deposits. For IIS, the story is also irrelevant, since in the case of stock investment, profitability depends on the chosen strategy by the private investor himself. At the same time, “serial” depositors are not just looking for higher rates, but also distributing their savings among many banks. In IIS, again, the distribution of money between several accounts of one investor does not make sense.
At the same time, the case of IIS has its own nuances. Thus, according to the bill, an insured event is the cancellation of the license of a professional participant in the securities market (broker, manager, depository), the revocation of the Central Bank license from the insuring bank, as well as the introduction by the regulator of a moratorium on satisfying the claims of the insurer bank's creditors. That is, exclusively fraudulent risk is insured. But, unlike bank deposits, you cannot count on insurance against investment risks and a decrease in the value of securities that an investor has purchased.
Because of this, there are potential risks that should be considered when working with retail clients. Private investors may have confusion regarding the definition of insured events. Inexperienced investors may think that, by analogy with deposits, all their money invested in the Russian stock market is insured and guaranteed to be returned. In this case, the investment insurance system will attract retail capital, but a number of clients will not be prepared for very low or even negative returns. The most negative outcome in this case is lawsuits and proceedings from private investors.
In our opinion, to solve this problem, the introduction of IIS investment insurance must be supported by a powerful information background - both locally, so that professional participants must explain the investment rules and risks to private clients, and at the federal level. In the same way, at one time there was information support for the introduction of a deposit insurance system. In addition, it is possible to provide for special certification of stock market participants wishing to work with retail, with a view to mandatory informing clients about insured and uninsurable risks.
There is another risk: that unscrupulous market players will look for opportunities to obtain insurance from the system - for example, collect retail money en masse, promising “guaranteed” crazy returns, and in fact leave the market. In the end, bona fide participants will have to pay for them. Such cases can be eliminated by strict control of the activities of players by regulators - the Central Bank, as well as the administrative fund for the investment insurance system, be it the DIA or another body.
The creation of such a guarantee system can double the number of individual investment accounts in the first year of operation: at the end of 2017 we expect about 300 thousand open investment accounts, in 2018 - 500-600 thousand. The deposit insurance system (DIS) at one time increased the confidence of Russians in banking system and served as a driver for filling it with money from individuals. People who choose exchange-traded instruments should be protected, just like those who place funds on bank deposits.
Once the law is passed, private investors will be able to be confident in the return of their funds from brokers and managers in the event of their license being revoked. According to the Moscow Exchange, at the end of June about 230 thousand IIS were already opened. With the creation of a guarantee mechanism, this number could double by the end of the year, and we expect an increase in demand for retail investment products.
The profitability of IIS (individual investment accounts) on average varies in the range of 10-20%. Even if you come across more tempting numbers, you will have to work hard to achieve similar results.
Various banks and investment houses are trying to combine the attractiveness of such an account, in which you can receive a personal income tax refund, with other products.
For example, the Otkritie Brokerage House provides you with two options: trade yourself or connect to a ready-made portfolio.
And although on the company’s website you will see an attractive figure of 47% per annum when connecting to a ready-made portfolio, here you need to take into account several nuances, such as:
1) Past successes do not guarantee future profits,
2) And also that at the moment when you decide to become an investor, the market will be at attractive levels for entry, and not vice versa.
The BCS company gives its clients the opportunity to repeat the commands of experienced managers for free for two months. In this case, you have a chance to earn up to 20% per annum. However, you will have to pay an additional commission for such luxury.
Sberbank (MCX: SBER) offers a completely risk-free approach: IIS + OFZ. In this case, you receive a tax refund and coupon yield on the bonds. Conservative - yes! Reliable - yes! But the interest will be more modest: in the first year it will be about 20-21% per annum, but then exactly as much as will be accumulated from the bonds. At current rates this is 7.5-8%.
This idea can undoubtedly become an alternative to bank deposits, but ordinary citizens are still primarily concerned about the safety of their funds.
And then, of course, the information that the State Duma of the Russian Federation last year adopted in the first reading draft federal law No. 76910-7 “On insurance of investments of individuals on individual investment accounts” made many believe that they could protect themselves.
However, this is not quite true!!! It is proposed to recognize as insured events the revocation of a license of a professional participant in the securities market - a broker, manager or depository, the revocation of a license to carry out banking operations from an insured who is a credit institution, as well as the introduction by the Bank of Russia, in accordance with the legislation of the Russian Federation, of a moratorium on satisfying the claims of creditors of an insured who is a credit institution. organization.
The bill does not provide for insurance of investment risks and risks of reducing the value of investments.
So drawdown or loss of part of your funds still remains your personal problem. But I must admit that in my opinion this is fair. You can't fry eggs without breaking eggs.
The source of financing for the investment insurance fund is expected to be contributions from professional participants in the securities market - participants in the insurance system. The maximum amount of insurance payment, according to the bill, is set at 1.4 million rubles - by analogy with the amount of compensation for deposits of individuals.
I believe that the idea of insurance is primarily aimed at attracting a wider range of people to invest in the Russian securities market.
I will say from my own experience that some players left it irrevocably after the events of 2008. Therefore, citizens need certain guarantees, and even if only the initial amount, without accrued interest, is covered by insurance, this is already an important step towards increasing the level of financial literacy of the population and a step that says that you will at least stay on your own.
Of course, there are still some inaccuracies; there is a long way to go from the ideation process to the implementation of this issue. And the main question will remain how insurance premiums will be made, with what frequency, etc. Will some body regulate this process, will sanctions be introduced against unscrupulous brokers?
But one way or another, new opportunities are opening up for us, which are at least worth exploring!
Anastasia Ignatenko, leading analyst at Teletrade Group
30.01.19 166 405 113
A detailed guide to IIS for those who want to quickly understand everything
The number of individual investment accounts on the Moscow Exchange recently exceeded half a million.
Evgeny Shepelev
private investor
A good reason to sort everything out for those who don’t yet have an IIS - or already have one, but still have questions.
In this article I have collected questions about IIS that we are most often asked at T-J. If you have any additions, write in the comments.
The main thing about IIS: what, why and how to open
What is IIS? An individual investment account is an investment method that appeared in Russia at the beginning of 2015.
It's essentially a tax-advantaged brokerage account with some restrictions. There is also an IIS with trust management, where all operations on the account are performed by the management company. The restrictions and benefits are the same.
What are the advantages compared to a brokerage account? First of all, tax deductions for tax residents of Russia. You can return personal income tax in the amount of 13% of the amount deposited into the IIS, up to 52,000 rubles per year: this is a deduction for the contribution. Or you can avoid paying personal income tax on income received on an IIS: this is a deduction for income.
Another plus is deferred taxation. In the case of a contribution deduction, the tax on profitable transactions on an individual investment account is calculated only when the account is closed, and not every year, as in a brokerage account. This is good: before the money goes to the tax authorities, you can invest it in something and receive additional income.
Are there any downsides? Eat. For an investor to qualify for a tax deduction, the account must exist for at least three years. Withdrawing money from the account will lead to the closure of the IIS:
For example, if an individual investment account was opened on December 20, 2018, then it can be closed on December 21, 2021 or later without losing deductions.
If you close the IIS earlier, the right to deduction disappears, and the tax already returned from the budget will have to be returned to the state with the payment of penalties for the use of the refunded personal income tax: 1/300 of the Central Bank rate of the returned tax for each day of use of this money.
During a calendar year, no more than 1 million rubles can be deposited into an IIS, but foreign currency cannot be deposited.
In my opinion, the disadvantages are not very significant, but the advantages make IIS a very interesting tool.
How to open an IIS? To apply for a self-managed IIS, you need to contact a broker who provides such a service. These are, for example, Tinkoff Investments, VTB, Zerich.
IIS with trust management can be opened in a management company, for example, Sberbank Asset Management, Alfa Capital. When opening an account, you will need to choose an investment strategy from those offered.
To open an individual investment account in the office of a broker or management company, a passport is enough; it is also advisable to know your TIN. Some brokers and management companies allow you to open an account remotely through their website, for example, with identification through government services.
If you open an account with a broker, you usually do not need to immediately replenish the IIS: it can be empty. In the case of a management company, when opening an account, you usually need to deposit money immediately. Of course, exceptions are possible: their rules may vary.
Which is better: self-managed or trust-based IRA? What is the difference? If you have a self-managed account, you make all the decisions yourself and you also carry out all the transactions yourself. At the same time, you pay a commission to the broker for transactions and for storing securities. All brokers have their own commissions.
If you have an IIS with trust management, the management company will do everything for you according to the strategy you choose. This is easier than managing it yourself, but the management company will take a few percent of your capital every year as a commission.
The management company does not guarantee profitability. Moreover, even if there is a loss on the IIS, the management company will still charge a management fee.
Can civil servants use IIS? It is possible: there are no restrictions in the laws on the opening of an individual investment account by civil servants or their relatives.
At the same time, some government employees are not allowed to invest in foreign financial instruments, which are also available through IIS. When investing in certain Russian securities, government officials may have a conflict of interest. For example, if you own shares in a company that, as part of your job, you must check for compliance with the law. In such a situation, you will need to formalize trust management or sell papers.
Find out whether the restrictions apply to you so that you can only invest in permitted assets.
Is it possible to have both an IIS and a brokerage account at the same time? Can. By the way, you can open as many brokerage accounts as you like, unlike IIS, which can only have one.
Is it possible to convert an existing brokerage account into an IRA? No, it won't work that way. It is necessary to open the IIS.
For what period does the IIS open? Should it be closed in three years? The validity period of an IIS is not limited either by laws or by an agreement with a broker. Three years from the date of opening is the minimum period of existence of an IIS, which is needed to receive tax deductions.
You can use the account even after three years; it will not close on its own.
What happens when withdrawing money from an IIS? The account will be automatically closed. If this happens less than three years from the date of opening, you will lose the right to tax deductions for this IRA. You will have to return to the state the deductions already received for contributions and pay penalties.
Is it possible to close an IIS, open a new one and use deductions on the new IIS? Can. There are no restrictions on this in law.
Are investments in IIS insured? No, this is not a bank deposit. The DIA does not insure either IIS or brokerage accounts. But if the broker stops working, then the assets can be transferred to another broker.
How to choose a broker for IIS? On the Moscow Exchange website there are top 25 brokers and management companies by the number of clients and by the number of individual investment accounts. I advise you to choose a broker from this list: these are large, reliable companies with all the necessary licenses. Consider the size of commissions, the range of available tools, read reviews about the service.
Where and when is the deduction received? The tax office will return personal income tax to the details that you provide in the application. The tax office has three months to conduct a desk audit and a month to transfer funds.
How quickly the tax office transfers the money depends on the inspection and your luck: for some, personal income tax is returned in a couple of months, for others at the end of the fourth, and sometimes the tax office violates deadlines and sends money later than it should.
What can you do with the deduction received? You decide for yourself, there are no restrictions: it’s your money. For example, you can deposit this amount into an IIS and buy a few more securities, or you can put it into a “safety cushion” or spend it on life.
Is it possible to return personal income tax if there is no white salary? It is possible if you have paid personal income tax, for example, from renting out an apartment or selling some property.
Is it possible to return taxes using an IIS if I am an individual entrepreneur? Only if DOS mode is selected. In other cases, individual entrepreneurs do not pay personal income tax at a rate of 13%. Individual entrepreneurs usually choose more favorable tax regimes, such as simplified taxation or imputation. But there is no income tax at a rate of 13%. This means there will be nothing to return.
But if you are an individual entrepreneur and at the same time paid personal income tax on some other income, then personal income tax can be returned. For example, an individual entrepreneur using the simplified tax system can sell an apartment and pay tax on the sale amount. This tax can be returned or offset using an IIS deduction.
Is it possible to receive deductions for the contribution after three years of existence of the IIS? Can. The main thing is that the conditions are met: the account is replenished, personal income tax is withheld from salary or other income, and you are a tax resident of Russia.
Is it possible to combine a contribution deduction with a property or social deduction? It is possible, but there is a “but”. The personal income tax refund cannot exceed the amount of personal income tax paid.
For example, your personal income tax for 2018 was 40,000 rubles. In 2018, you deposited 300,000 rubles into an IIS and spent 100,000 rubles on paid treatment. You can return 39,000 rubles using an IIS and another 13,000 for paid treatment. In total, this is 52,000 rubles, but the tax office will return only 40,000 - the same amount as personal income tax withheld from you for this year.
What does the income deduction (type B) provide? This deduction exempts the investor from paying personal income tax on income received through an IIS, regardless of the amount of income. However, tax on dividends will still be withheld.
For example, at the beginning of 2016 you opened an individual investment account and deposited 300,000 rubles into it. You took a risk and successfully invested in shares, which soon rose noticeably in price. At the beginning of 2019, we decided to sell the shares and close the IIS. After selling the shares, the account has 800,000 rubles, that is, your income after deducting commissions is 500,000 rubles.
Personal income tax could have amounted to 65,000 rubles, but you chose a deduction for income, so these 65,000 will remain with you.
If you made millions, there would still be no tax withheld due to this deduction.
How to get an income deduction? You need to include a tax certificate stating that you have never used a deduction for contributions using this IIS. Give the broker a certificate before closing the account, and the broker will not withhold personal income tax from profitable transactions on the account.
Is it possible to combine type A and type B deductions? No. You can only use one type of deduction. If you use the deduction for contributions (type A) at least once, the deduction for income (type B) for this IIS can no longer be applied.
What type of deduction is better to choose? Depends on the amount in the account, the return on investment, and the amount of personal income tax paid. In most cases, deductions for contributions are more profitable, but there are nuances.
Can the tax office refuse a deduction? Maybe if, for example, you have two IRAs at the same time. Or if he decides that you are depositing money into an IIS only for the sake of a deduction, and are not going to invest. This could theoretically happen if you deposited money into the account only at the end of the third year, did not make transactions with securities and almost immediately closed the IIS, after which you asked for a deduction.
The most important
IIS is a convenient way to invest for a period of three years. If you pay personal income tax, you can return it using a deduction for contributions to IIS. If personal income tax is not withheld from you, then you can use a deduction on income and not pay personal income tax on income from this account.
Both types of deductions allow you to invest more profitably. Consider opening such an account if you don't already have one.