In Russia, Forex traders must pay a 13% income tax (NDFL) on profits withdrawn from their trading accounts, but only on amounts exceeding initial deposits. File a 3-NDFL declaration by April 30 of the following year and pay by July 15.
How to Pay Forex Profit Tax Correctly
Under the Russian Tax Code, all citizens must pay tax on income, and Forex profits along with PAMM accounts are taxable at 13%. Submit your 3-NDFL declaration to the Federal Tax Service (FNS) at your residence by April 30 of the next year (Article 229, Clause 1 of the Tax Code). Pay the NDFL by July 15 of the following year (Article 228, Clause 4). After filing, you’ll receive payment details via notification.
What Counts as Taxable Forex Profit?
Taxable income is profit exceeding your deposited funds. If your broker withdraws more than you deposited to your bank or payment system, that’s the taxable base.
For example, if you deposit 100,000 RUB over the year and withdraw no more than that by December 31, no tax is due. Funds remaining with the broker do not count as income until withdrawn, benefiting long-term traders.
Practical Ways to Pay Forex Tax in Russia
Broker Handles Tax Payment
[info_block align=”right”]Note that Russian law penalizes tax evasion with up to three years imprisonment![/info_block]
Theoretically, a Forex broker can act as a tax agent, withholding and paying 13% tax. However, few brokers in Russia do this; most are foreign-registered and leave it to traders.
Pay Tax Yourself as an Individual
As a law-abiding trader, expect bureaucracy:
- Open a dedicated bank account for Forex operations to simplify tax calculations.
- Request a stamped annual statement from your broker confirming trades and withdrawals; it arrives by mail as proof of income.
- Prepare and submit the 3-NDFL declaration to FNS, then pay the tax.
FNS staff may lack Forex expertise, leading to repeated revisions and office-hopping.
Pay Forex Tax via Individual Entrepreneur (IP)
Register as an IP for simplified taxation at 6% on turnover. Choose OKVED codes like 65.23.4 (swaps, options, exchange deals) or 65.23.1 (securities investments) that qualify.
Pay fixed annual contributions: 26% to Pension Fund and 5.1% to Medical Insurance Fund from minimum wage, totaling 27,990 RUB in 2017 (23,400 + 4,590). Pay regardless of profit. Over 300,000 RUB income adds 1% to Pension Fund on excess.
Pay via IP bank account. Deduct business expenses like office equipment or rent to reduce taxable income. Hire an accountant for compliance.
How Does the Tax Authority Find Undeclared Forex Income?
Banks monitor withdrawals under anti-money laundering laws. Exceed limits (ask your bank manager), and accounts freeze while FNS investigates sources.
Consequences of Not Paying Forex Tax
Russian law imposes penalties up to three years imprisonment for evasion. Stay compliant for peace of mind.
FAQ
Do I pay tax on Forex profits still on the broker’s account?
No, only withdrawn amounts exceeding deposits are taxable.
Can I reduce Forex tax by registering as an IP?
Yes, simplified system taxes turnover at 6%, plus fixed contributions, with expense deductions.
What happens if I ignore Forex tax filing?
FNS can detect via bank reports; penalties include fines and up to 3 years prison for evasion.
