Why is IIS needed?
An individual investment account, or IIA, is a special account for trading on the exchange, for which a preferential tax regime is provided. At the same time, like a regular brokerage account, IIS allows you to make transactions in the securities market: buy and sell stocks, bonds and currencies.
The main feature of an individual investment account is a guaranteed income in the form of a tax deduction, which makes IIA an excellent tool for both novice investors and experienced traders.
With the help of a tax deduction, you can receive up to 52,000 ₽ per year – if you pay personal income tax and replenish IIS every year by 400,000 ₽ or more. Another option is the opportunity to exempt your income from investment transactions from 13% tax, which is more profitable when the investment strategy you choose brings in more than 52,000 ₽ per year. How does the IIS tax deduction work?
Another plus is deferred taxation: tax on profitable transactions on IIS is calculated only when the account is closed, and not every year, as on a brokerage account. This is good: as long as the money has not gone to the tax office, you can invest it in something and get additional income.
In addition, IIS in Tinkoff Investments has other advantages. Here are just a few of them.
All investments are in your phone. With Tinkoff, you don’t have to install complex programs for working on the stock exchange and figure out how they work for a long time. The Tinkoff Investments mobile app has a clear interface with all the necessary functions. It will be convenient for those who are just taking their first steps in the stock market, and for investors with experience. Download the Tinkoff Investment app
To buy securities in the Tinkoff Investments app, simply select the asset you like in the list, enter the desired amount and click “Buy”
Fast account opening. It only takes a few minutes to complete the online application. Our representative will come with the necessary documents – where and when it is convenient for you. If you already have a Tinkoff debit card, you won’t need a meeting: documents can be signed with a code from SMS, and an account will be opened almost immediately after the application is made. If there is a day off on the exchange or you left an application after 19:00 Moscow time, we will open an account on the next business day. Fill out an application for an IIS
Simple rates. On the Investor tariff there is only a commission for transactions – everything else is free. The “Trader” tariff has a small monthly fee, but the minimum commission for any type of transactions. There are no more hidden fees or commissions.
Low entry threshold. You can start investing even with 10 ₽ – about the cost of one share of the Eternal Portfolio funds from the management company Tinkoff Capital. Most bonds cost around 1000 ₽.
Assistance in the selection of assets. Selections of stocks and bonds can be found in the app under “What to buy”. There, our analysts collect data on the most attractive companies – for example, those involved in cloud computing, manufacturing robots, or developing a vaccine for COVID-19.
Also, our robot-advisor will help with the selection of your first securities. Answer just three questions, and he will generate a ready-made list of assets that are best for you. How the robot advisor works
And if you know exactly what you are looking for, select stocks in the screener – this is a special filter that helps you select securities by a variety of parameters: by dividend income, capitalization, financial market, or belonging to the manufacturing sector.
Wide range of securities available. With IIS in Tinkoff on the Moscow Exchange, you can buy shares, bonds and Eurobonds of Russian companies, as well as 8 major world currencies and a number of exchange-traded funds – ETFs. On the St. Petersburg Stock Exchange, you can buy Eurobonds of Russian companies, as well as shares of many American, German and Chinese companies.
24/7 support. If you have any questions, you can ask them in the Tinkoff Investment app chat or in your personal account on the tinkoff.ru website. We answer around the clock, any day of the week – without holidays and weekends.
What is the difference between a brokerage account and an IIS?
The main difference between them lies in the guaranteed income that can be obtained from IIS through a tax deduction. Such income is expressed either in the annual return of a part of the paid personal income tax in the amount of up to 52,000 ₽, or in the possibility of exempting your income from investment transactions from 13% tax. How does the IIS tax deduction work?
Another plus of an individual investment account is deferred taxation: tax on profitable transactions on IIA is calculated only when the account is closed, and not every year, as on a brokerage account. This is good: as long as the money has not gone to the tax office, you can invest it in something and get additional income.
At the same time, an individual investment account has a number of restrictions that a regular brokerage account does not have. For example, one person may have several brokerage accounts, but there should be only one IIS.
IIS also needs to be opened for at least 3 years – and during this time you cannot withdraw money from it. If you withdraw even a small amount, the account will automatically close. If you do this earlier than 3 years from the date of its opening, you will lose the right to a tax deduction. More about IIS restrictions
It will not work to turn an existing brokerage account into an individual investment account – you need to open an IIS separately.
How to make money on IIS?
You can make money on IIS in two ways: to receive tax deductions from the state, and also to trade on the stock exchange, as with a regular brokerage account.
With the help of a tax deduction, you can be guaranteed to receive up to 52,000 ₽ per year if you pay personal income tax and replenish IIS every year by 400,000 ₽ or more. Another option: you can exempt your transaction income from 13% tax – this is beneficial when the investment strategy you choose brings in more than 52,000 ₽ per year. What are the types of IIS
In addition to tax deductions, you can trade on the exchange: buy and sell currencies, make transactions with securities and receive payments on them in the form of coupons and dividends.
How to get a tax deduction?
The algorithm of actions will depend on what type of tax deduction you are making out.
Type A deduction – you can apply for a personal visit to the Federal Tax Service, or by filling out an application online on the tax website.
Type B deduction – you can apply for it through your broker immediately before the closing of the IIA or at the tax office – also in person or online. Learn more about IIS tax deductions
Who is IIS suitable for?
IIS is best suited for long-term investments – that is, for investments for a period of three years or more. It is convenient for both novice investors and experienced traders with a profitable trading strategy.
Novice investors can receive an annual guaranteed income of up to 52,000 ₽ if they pay personal income tax and replenish IIS every year. Traders can exempt IIS income from 13% tax if their trading strategy brings in more than 52,000 rubles per year or if they do not pay taxes as an individual.
Any citizen of Russia over 18 years of age who pays taxes in Russia and has the status of a tax resident of the Russian Federation can open an IIS. To do this, it is not necessary to have a permanent registration (propiska), it is enough to be in Russia for at least 183 days a year.
You will not be able to open an IIS without Russian citizenship, even if you live in Russia and pay taxes to its treasury. Open IIS
For how many years is the IIS open?
IIS is opened for at least three years. If you choose to close it before the expiration of this period, you will lose the right to a tax deduction. And the deduction that has already been received will have to be returned.
For example, if an IIA is opened on June 1, 2020, then it can be closed on June 2, 2023 or later without loss of deductions.
However, the account will not automatically close after three years. You can continue to use the Individual Investment Account and continue to receive annual tax credits. Or trade on the stock exchange with the opportunity not to pay tax when closing the IIA, if you did not apply for a tax deduction for contributions on it.
How to open IIS?
Fill out a short form online – the whole process will only take a few minutes. At the end, sign the application form with the code from the SMS.
Please wait while we verify your details and open an account, this will take about an hour and in rare cases up to one business day. When the IIS is ready, we will send you an SMS and an email. Who can open an IIS
If you don’t have Tinkoff products yet , within 1-2 days our representative will bring you an agreement and a Tinkoff Black card – you need it to replenish IIS around the clock and without commission. While the card has not been brought, you can replenish the IIS from the card of another bank and immediately start investing.
What type of IIS to choose?
It is not necessary to choose the type of IIS right away – this can be done even three years after opening an account. Then you can evaluate the profitability of your investments and calculate which type of tax deduction will be more profitable.
The choice of IIA type occurs at the moment when you apply for a tax deduction on your individual investment account. How to choose the type of IIS
Is there any investment strategy that should be followed in IIS?
The simplest and most obvious strategy is to replenish the IIS every year and receive income in the form of a tax deduction. And so that the money does not lie idle and bring additional income, you can buy OFZ government bonds – this is the most low-risk instrument on the financial market. In addition, OFZs will generate additional income in the form of regular coupon payments.
What is DU IIS? Does Tinkoff have a trust management of an investment account?
IIS trust management is an agreement between you and a broker, according to which the broker makes transactions on your IIS in order to receive income. For this, the broker takes a certain monetary reward.
Tinkoff Investments does not offer asset management services.
If you do not want to spend a lot of time investing, open an IIS and replenish it once a year to receive guaranteed tax deductions. And so that the money does not lie idle on the account and generate income, buy Tinkoff Capital funds. For example, we have Eternal Portfolio funds in rubles, dollars and euros. They follow a strategy of buying different types of assets in equal shares: gold, stocks, bonds and currencies. These assets balance each other: when some of them lose value, others, on the contrary, grow. As a result, such a strategy helps to make a profit in any conditions: with growth, stagnation or recession in the economy.
One share of the fund from Tinkoff Capital costs about 10 ₽, and Tinkoff Investments clients can trade such shares without transaction fees. More about funds from Tinkoff Capital
Which is better: IIS or PIF?
IIS is a special investment account with a preferential tax regime, which you manage yourself.
A mutual fund is a mutual investment fund, that is, a separate organization to which you give your money, and it already invests them, following a certain strategy. At the same time, you cannot directly manage the fund’s assets and change the composition of the portfolio. And for the purchase and sale of shares, as a rule, there are additional allowances of several percent from the management company.
On the other hand, shares of some funds can also be bought on IIS. To do this, they came up with exchange-traded mutual funds (BPIF) – they are traded on the stock exchange like ordinary shares, and one share is a piece of the entire property of the fund.
For example, the shares of the Eternal Portfolio funds from the management company Tinkoff Capital follow the strategy of buying different types of assets in order to receive income in any phase of the market: growth, fall or stagnation in the economy. One share of the fund costs about 10 ₽, and Tinkoff Investments clients can trade such shares for free and without transaction fees. More about funds from Tinkoff Capital
How to protect yourself so as not to lose money?
Take our free How to Invest course to learn how to avoid the most common mistakes new investors make. But in short, here are some tips.
Diversify – do not invest all your money in one asset, but rather spread it across different instruments. Our robot-advisor will help you build a portfolio of several papers, and you can also look for investment options in the “What to buy” section – in the Tinkoff Investments application and in your personal account on the tinkoff.ru website. How the robot advisor works
Investment ideas, selections of securities from Tinkoff specialists, as well as other tools to build your first investment portfolio
Buy shares of funds instead of buying individual securities. This is one of the safest types of investments for a novice investor. Fund managers have extensive experience working on the stock exchange, they themselves select and buy securities according to the declared strategy.
For example, funds from Tinkoff Capital follow the “Eternal Portfolio” – a strategy based on a portfolio with equal shares of assets that should generate income regardless of the current state of the financial markets. More about funds from Tinkoff Capital
Use trading orders — in the Tinkoff Investments app, as well as in your personal account and in the trading terminal, you can set up special “stop loss” and “take profit” commands. They help to limit losses when securities go down in price, and take profits in time when the value of assets begins to rise. More about types of exchange orders
How to close IIS?
To close your account, write to us in the chat of the Tinkoff Investments application or in your personal account on tinkoff.ru. You can also call 8 800 755-27-56.
Remember that if you close the IIA earlier than 3 full years from the date of its opening, you will lose the right to a tax deduction. And the deduction already received will have to be returned.
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