Russia's State Duma Passes VAT Exemption for Interest on Bullion Metal Deposits

Overview

• The State Duma approved the measure in second and third readings on November 11, and the law now awaits official publication.
• Interest paid by banks on accounts and deposits denominated in precious metals in bullion form will be exempt from VAT.
• Placement of precious metals not attracted as deposits is also exempt, enabling VAT‑free loans funded by metals acquired from third parties.
• The law takes effect one month after publication but not before the first day of the next VAT quarter.
• Lawmakers say the reform removes a tax imbalance with ruble and foreign‑currency deposits, though operational and accounting hurdles could still temper uptake.