QUESTION: Taxes in investing: when do you need to file a tax return yourself?

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Filing a 3-NDFL tax return independently for investments is required in situations strictly defined by law, where the broker or management company cannot automatically withhold income tax. To approach this process properly, it is useful to calculate the base scenario and stress scenario in advance, allow a 10–20% time buffer for potential bureaucratic delays, and decide beforehand which specific expenses or documents you will need first.

You must file a tax return yourself in the following main cases. First, if you received income from foreign sources, such as dividends from foreign stocks in accounts with foreign banks or even with Russian brokers if the dividends were paid to foreign details and the tax was not withheld automatically. Second, independent income declaration is required when selling property or securities if the broker is not a tax resident of the Russian Federation. Third, a tax return is filed to claim tax refunds through tax deductions, such as the type A IIS investment deduction or the long-term holding deduction for securities.

To ensure that filing your return goes smoothly and successfully, it is recommended to follow a simple procedure:

1. Request income statements for sources outside the Russian Federation, broker reports, and certificates of expenses for purchasing securities for the past year from your broker or brokers.

2. Register in the taxpayer's personal account on the website of the Federal Tax Service of Russia, which will greatly simplify filling out documents electronically without the need for a personal visit to the tax office.

3. Fill out the 3-NDFL form online, attaching scans of supporting documents, broker reports, and payment orders confirming the expenses for purchasing assets.

4. Check the accuracy of the completed data and submit the package of documents to the tax authority by April 30 of the year following the expired tax period.

5. Pay the calculated tax by July 15 if you owe money to the state based on the tax return, or wait for the refund of overpaid tax to your specified bank account.

QUESTION: Taxes in investing: when do you need to file a tax return yourself?

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