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Info  Dear client! Fraudulent phone calls and scam e-mails on behalf of banks are common, with scammers trying to gain access to a client’s bank account. Never enter PIN codes if you have not initiated the transaction yourself and remember that the bank will never ask for the PIN 2 code when entering the internet bank!

Taxation of deposit interests

From  2018, the state began to tax the interest income from bank deposits of private residents. The income tax rate for interests is 20%.

The obligation to tax extends also to those agreements that were concluded before 2018, but interests of which will be paid in 2018 or later.

The bank withholds the income tax at the moment of making interest payment for settlement or deposit account, and transfers it to the Tax and Customs Board. Client does not have to take any additional actions for paying the income tax.

By opening deposits from your investment account, you can postpone the payment of income tax for earned interests. However, the owner of investment account must calculate the interests and declare all contributions to and payments from the investment account. The obligation to pay income tax arises, when the amount of contributions to the investment account exceeds the amount of payments from the account.

To start using investment account, one should open a new settlement account in the bank, determine this as an investment account and to make transactions with financial assets, from which you wish to postpone the income tax, through this account.

For further questions please consult the Income Tax Act and contact the Tax and Customs Board.