Investors to be granted income tax exemption
The Ministry of Finance has prepared a law that would offer tax incentives to private investors.
They would be freed from paying income tax on transactions conducted through bank accounts and on financial markets. Investors would be eligible for such benefits upon either opening an “individual investment account” at a bank or committing up to 1 million rubles (approx. $33 thousand) to a broker over the course of five years.
Inidividual investments are popular in the U.S. and other countries, but are virtually nonexistent in Russia. It is hoped that the move will motivate Russians to invest and increase the capitalization of the local market.