Alpha Capital has introduced an interactive tax calculator for investors, allowing them to evaluate savings from preferential investment regimes, specifically the IIS-3 and long-term ownership benefits (LDV). The calculator is accessible to all users on the company's website.
To use the calculator, investors must input their initial investment amount, expected duration, and anticipated returns. The tool calculates total tax liabilities based on the applicable tax rate and visually demonstrates potential savings. For instance, a conservative investor with a portfolio of 10 million rubles, achieving an annual return of 10% over five years, would owe 793,600 rubles in income tax. However, utilizing the IIS-3 or LDV benefits can eliminate tax liabilities entirely.
Starting in 2024, Russian investors can open a new type of investment account, the IIS-3, which offers dual tax advantages: an annual deduction on contributions and exemption from income tax on profits after a minimum holding period. The calculator's website features a FAQ section addressing common inquiries, including account setup, permissible investment securities, currencies, and associated tax benefits. An investor putting 20 million rubles into an IIS-3 account with a projected annual return of 20% could save approximately 4 million rubles, or around 800,000 rubles annually.
The IIS-3 account is particularly appealing for larger investors with portfolios of 15-20 million rubles. Additionally, long-term investments are historically favorable in the stock market.
According to Danila Panin, director of product and service development at Alpha Capital, “Amid changes in income taxation for securities and increasing tax burdens, many investors are seeking ways to optimize their expenses. The popularity of tools that allow for tax deductions on long-term holdings is on the rise. The IIS-3 is one of the most convenient ways to achieve tax benefits. Our tax calculator enables investors to clearly assess the advantages of various tax optimization methods.” He added that the company plans to enhance the calculator's capabilities, providing investors with access to new interactive services to make informed investment decisions.