Banking services are very popular. VTB 24 does not cease to expand its range of services. One of the bank’s useful products is IIS. An individual investment account with VTB 24 makes it possible to receive an additional 13 percent of the income to the acquired asset. The bank also provides an opportunity to not pay taxes on income on the account.
About the bank
Moscow, Rostov, Belgorod, Oryol, St. Petersburg. VTB 24 has opened branches in many cities of the Russian Federation. This bank is considered one of the largest in the Russian Federation. It was created in 2004. VTB 24 network has more than a thousand branches and offices in the Russian Federation.
In 2004, VTB 24 was formed on the basis of CJSC CB Guta Bank, which burst due to the crisis. However, the VTB 24 brand officially appeared in late summer 2005 after Guta Bank changed its name to Vneshtorgbank Retail Services CJSC. In Moscow and St. Petersburg, VTB 24 has more than 50 branches.
IIS
Many people wonder what an individual investment account is. This is a specific brokerage account. Its feature is that an individual receives a tax deduction.
Each individual operating in Russia has the right to create only one individual investment account with VTB 24. The account management agreement is a brokerage agreement. Only an adult individual who is a tax representative of the Russian Federation can open an account.
IIS Opening Procedure
Practice says that many people have difficulties in the process of opening an account. If there is a need to open an individual investment account with VTB 24, the first thing to do is to call the bank by phone and find out the address of the nearest branch. After this, it is necessary to agree with the employee of the department about the time of the meeting.
The procedure for opening an individual investment account cannot be called simple, since in addition to creating the account itself, an individual will have bank accounts “master” and “current”. From the second, the opportunity will be provided to transfer money to your investment account.
It is necessary to take the passport of a Russian citizen and SNILS with you to the bank. Already at the bank, its employees will provide a package of documents necessary for opening an IIS. This package includes an application by an individual to provide services and to open a bank account, as well as services in the financial markets with the maintenance of IMS.
After the end of the procedure, the client will receive a questionnaire, a plastic card, an envelope with a PIN code. Also on the phone will receive an SMS message stating that the account has been successfully opened.
Refill
This stage is for many IIS owners the most difficult and most confusing. To understand everything, you should contact the manager during the opening of an individual investment account, so that he explains everything in detail.
Money can be credited to the account from any branch of VTB Bank. The process of replenishing an investment account consists of three stages:
- Crediting money to a bank card.
- Transfer of funds to the current account.
- Transferring money to an investment account.
Top up account from computer and smartphone
IIS can be replenished from a computer using the VTB24-Online service. To do this, click on "Actions" in the "Master Account".Then click on the inscription “Make a translation”. Then you should select the option “Deposit broker account”. To carry out this operation, you must fill in all the fields. Confirmation of the transfer is carried out by entering a code that will be sent to the specified mobile phone number.
Also, the owner of IIS has the opportunity to transfer money to his account using the application for smartphones and mobile devices. To do this, you must enter the application, open the Master account and transfer funds by selecting the item entitled “Transfer of funds for brokerage services”. Then you need to fill out a form in which you need to indicate the amount of the transfer and the number of the subposition. To confirm the operation, you must enter the code that comes to the phone. Money will be credited to the IIS within five minutes.
Tax deduction
IIS in VTB 24 provides for two forms of tax deduction. The account holder has the right to receive 13 percent of the total amount of money that was deposited into the account starting from January 1 of the current year. However, it should be mentioned that the tax deduction cannot exceed the amount of 13 percent of 400 thousand rubles. In other words, the maximum amount of money that can be received by the owner of an individual investment account in VTB 24 is 52 thousand rubles.
The second option involves the release of the owner of the IIS from the payment of personal income tax. This applies to all profits that were received from operations on the account for the entire period of the account. However, this condition only applies if an agreement to create an individual investment account was registered more than three years ago.
Combining the two types of tax deductions is not possible. This means that, having received a tax deduction once, the owner of an individual current account will not be able to be exempted from paying personal income tax. Before choosing any form of tax deduction, you should study in detail the question of what an individual investment account is. This will help make the right decision. You should also take into account what amounts the client will work with.
Businessman income deduction
The basis for the deduction is determined at the time of closing the account. But the right to benefit will be canceled if the IIS in VTB 24 closes within three years from the moment the account was opened.
No deduction is made for contributions made by the account holder. It is also not necessary to receive income that is taxed at a thirteen percent rate. When the IIA closes, the client’s income will be exempt from personal income tax.
Deposit to account
The maximum amount to top up an account is 1 million rubles per year. Until mid-June 2017, there was a limit on depositing funds - 400 thousand rubles. This has led to a number of positive reviews about the individual investment account at VTB 24. In situations where an individual tries to transfer more than one million rubles, the entire amount will be returned back in full and no funds will be credited.
An account can be opened for an unlimited period. The minimum investment period for IMS is three years. This period begins from the date when the agreement was concluded for the opening of the ISS at VTB 24. All deductions will be transferred to the budget of the Russian Federation if it is less than three years at the time of closing the account.
The bank also provides the opportunity to make additional deposits in the amount of up to 400 thousand rubles during the year. In this case, a partial withdrawal of money on the account is not allowed.
Receive income tax deduction
In order to receive income taxes, one main condition must be met. An individual investment account with VTB 24 should be open three or more years ago. In order to receive money, the taxpayer must provide the broker, whom the bank itself is, a certificate received from the tax office.The certificate must confirm the information that the account holder has never used investment deductions on his individual account for the entire time that the ISS exists.
Subject to these conditions, the bank, which is also a tax agent, pays money, and personal income tax in this case will not be withheld. If the IIA closes and is not three years old, then the tax is levied on a positive financial result according to the rules that apply to a regular brokerage account.
Receiving a tax deduction on contributions
In order to receive the money that was paid as tax on money invested by an individual, the account holder must contact the tax office to receive a declaration in the form of 3-personal income tax.
In addition to the declaration, documents should be provided that confirm the receipt by an individual of income taxed at a thirteen-percent rate in the required tax period. Also, the account holder must confirm that the money was credited to the IIS. And the last document that must be submitted to the bank to receive a tax deduction on contributions is a tax refund application. The statement should indicate the details of the tax payer.
Options for using a personal investment account
OFZ options for holders of ISS may be OFZs with variable and constant coupons, sub-federal bonds, as well as state-owned companies of the Russian Federation (RJ, Rosneft and others).
An individual investment account in VTB 24 with a deduction for contributions. If each year during the first three years to invest 400 thousand rubles (1 million 200 thousand rubles for three years in total) with a ten percent level of return, then portfolio income for the first, second and third years will be 40 thousand, 80 thousand and 120 thousand rubles.
The tax rate on personal income, which applies to the contributions of the account holder, is 13 percent. Using simple mathematical steps, you can determine that the amount of tax refund will be 52 thousand rubles per year. This means that after three years of investment activity, an individual will earn 156 thousand rubles.
Thus, the total income for the first year will be 92 thousand rubles, for the second - 132 thousand rubles, and for the third - 172 thousand rubles. The total amount of income that the investor will receive within three years will be 396 thousand rubles. The total return on investments will be 23 percent, 16.5 percent and 14.3 percent for the first, second and third years, respectively.
An individual investment account in VTB 24, net of income. If you replenish ISS for three years every year for all of the same 400 thousand rubles at a ten percent yield and a thirteen percent tax rate on personal income, which applies to the investment income of the account holder, then the total income for the first year will be 40 thousand rubles, for the second year - 80 thousand rubles, and for the third year - 120 thousand rubles.
This amount of investor's annual earnings will be equal to the annual income of the entire portfolio. The total amount for three years will be 240 thousand rubles. This means that the total return on investment without reinvesting the coupon will be equal to the coupon yield, that is, 10 percent. This is due to the fact that, unlike an individual account with a deduction for taxes, the IIS with a deduction for income does not provide for the return of a previously paid tax on personal income.
The total amount of income may vary depending on the profitability of the investee. For example, if the portfolio yield level is 41 percent, then the final income from IIA minus contributions will be almost 1 million 200 thousand rubles a year, and the average return on investments will be about 59 percent.