From 1 July 2023, interest income will be subject to a 13% social contribution tax in addition to the 15% personal income tax. Interest income from savings deposits or securities purchased before 1 July are not affected by the social contribution tax. Investment certificates of real estate funds are also exempt from the new taxation. Interest on building savings deposits and baby bonds are also exempt.
The government’s aim is to steer the savings of the population even more towards government bonds. Private investors will not have to pay taxes or levies on interest on government bonds issued after 1 June 2019.
The social contribution tax on interest income is temporary and applies for the period of the state of emergency due to the armed conflict in Ukraine.