The National Association of Securities Market Participants (NAUFOR) proposed to the Ministry of Finance to make 12 amendments to the Tax Code, which should make operations with securities more profitable. “These amendments should stimulate the development of the financial market and increase the attractiveness of investments in the domestic market,” – said in a letter from NAUFOR to Deputy Finance Ministers Alexei Sazanov and Alexei Moiseev.
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In particular, NAUFOR offered to provide bond buyers with an annual tax deduction similar to the conditions for deposits in order to level the playing field for investments in the debt market. “Provide an annual tax deduction on transactions with corporate and government bonds in respect of interest income within the amount calculated on the basis of 1 million rubles multiplied by the key rate of the Bank of Russia, in order to equalize the conditions for investments in the debt market with terms of deposits”, – says the letter from NAUFOR.
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Other amendments provide for the abolition of taxation of foreign exchange revaluation of bonds denominated in foreign currency by Russian corporate issuers, the abolition of VAT for investment advisers and brokers operating in the currency and precious metals markets, etc. Experts believe that these proposals can indeed significantly increase the attractiveness of securities transactions for citizens. For example, thanks to the tax deduction for bond buyers, even more Russians will choose investments over keeping money in bank accounts. “Now Russians go to the financial market, because the rates on deposits and deposits in banks are low due to the reduction of the Central Bank’s refinancing rate to a record level,” notes Artem Denisov, managing partner of the Genesis law firm.
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– Rates on bonds, even government bonds, and even more so on corporate bonds, are now higher. This is the main reason for the interest in the stock market. “
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Sergei Khestanov, Associate Professor of the Department of Stock Markets and Financial Engineering, Faculty of Finance and Banking, RANEPA, considers the initiative to abolish the taxation of foreign exchange revaluation of bonds denominated in foreign currency as “especially useful”. After all, it is with the currency revaluation that great inconveniences are now associated, the expert points out.
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“The abolition of VAT for investment advisers, in my opinion, will not greatly affect the desire of advisers to legalize, but in any case it is a positive step,” believes Sergey Spirin, head of educational projects at AssetAllocation.ru, FinWebinar.ru. – Over the past two years, the overwhelming majority of investment advisers have either left the profession altogether, or into the gray zone, since getting into the Central Bank’s register is now associated with excessively high regulatory costs, which the vast majority of advisors are not ready to bear. Therefore, in the register of the Central Bank there are now only about 10 advisers who are not directly related to large organizations, while in reality there are several hundred. “
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However, experts are not sure that the state will consider it necessary to stimulate the development of the stock market through tax incentives right now, when, on the one hand, banks are faced with an outflow of deposits, and on the other, the budget is in dire need of money. “NAUFOR’s proposals are also aimed at supporting investors through tax incentives, which will lead to a decrease in the revenues of the Russian budget,” Denisov recalls. “The total amount of taxes collected from stock market participants in the Russian Federation is small in comparison with VAT and MET,” retorts Khestanov. “The budget won’t notice it.”
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“NAUFOR’s proposals are aimed at stimulating the stock market in Russia and, as a result, at stimulating the issuance of bonds by companies to obtain debt financing not from banks, but from investors,” explains Denisov. “And there should be much more for Russian companies to conduct IPOs, of which there are too few in Russia now.”
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The Ministry of Finance has not yet given a response to NAUFOR’s initiative. “These proposals are under consideration,” the press service of the department told Vedomosti.
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