Taxes on bond income Risks of buying bonds
Posted: Sun Apr 20, 2025 8:52 am
Personal income tax (PIT) in the amount of 13% will have to be paid on the income from the purchase/sale of a bond. For example, you bought a bond on the stock exchange for 1000 rubles and held it for a year, during which time the price of the bond rose to 1100 rubles. You sold it at this price. From 100 rubles you will have to pay 13% PIT = 13 rubles. This tax will be withheld from you by the broker when you withdraw money from the account or at the end of the calendar year.
Also, from 01.01.2021, a 13% tax will have to be paid on all coupons that come to you. The only exception will be the situation when you have an individual investment account and a type B tax deduction is applied.
Read more about the features of an individual investment account (IIA) here .
Investments always involve risk. Although gambling data middle east bonds are considered the most reliable instrument, there are still risks.
You can read all about the rules of effective investing here.
Risks of investing in bonds:
Default . If the issuer (this could be a country) declares itself bankrupt, then there will be no payments on the bond. This is the main risk of bonds, which is why you should approach the selection of securities carefully.
Restructuring of obligations . Simply put, changing the terms of the bond issue – its term, coupon size, and the frequency of payments.
Liquidity . It is not always possible to sell your bonds and receive income from the sale. Bonds may fall in price, so it will only be possible to sell them with a certain loss.
Interest . This risk is more inherent in long-term bonds. There is a possibility that the rates on other bonds will become higher, and your bonds will remain with a fixed % below the market, which will mean that you will not receive any possible income. This risk is closely related to the movement of the Central Bank rate.
Inflation . There is always a risk that inflation will be higher than your yield rates. This risk is also inherent in deposits.
How to reduce risks
The first thing to note is the law of the stock market, which tells us that if we take less risk, we get less return.
Thus, OFZs are considered the most reliable bonds , but their yield rates are only slightly ahead of deposit rates and inflation.
The next most reliable are bonds of the largest companies in our country, such bonds have a rating of "AAA". The yield here is higher than on OFZ, but less than in riskier securities.
Papers with a rating of "B" are less reliable, but also more profitable. In this case, you need to study the issuer in detail, its market indicators, as well as news about this company. You also need to follow the news of this company after the purchase in order to understand the course of events, as well as the moment to get rid of these papers.
Rules for choosing a bond
Before purchasing, decide on the following bond parameters:
Currency. Will you buy ruble bonds or Eurobonds? The first will pay you a coupon in rubles, and the second in foreign currency. But the cost of Eurobonds is also higher, usually from 1000 USD.
Coupon size and yield to maturity. The yield should exceed deposit rates, but not be higher than the average market rate. High coupons mean increased risk. Pay attention to the coupon payment terms.
Maturity period. The further the maturity period, the more the bond price can change: be higher or lower than the par value. For short-term and medium-term bonds, such deviations are smaller. This information is important for you if you do not intend to hold the bond until its maturity, but want to sell it earlier. In this case, it is important that the price is higher than the par value or at least equal to it.
Issuer. Who issues this bond, what country or company is it. Read the news, read the company's reports before making your choice.
Also, from 01.01.2021, a 13% tax will have to be paid on all coupons that come to you. The only exception will be the situation when you have an individual investment account and a type B tax deduction is applied.
Read more about the features of an individual investment account (IIA) here .
Investments always involve risk. Although gambling data middle east bonds are considered the most reliable instrument, there are still risks.
You can read all about the rules of effective investing here.
Risks of investing in bonds:
Default . If the issuer (this could be a country) declares itself bankrupt, then there will be no payments on the bond. This is the main risk of bonds, which is why you should approach the selection of securities carefully.
Restructuring of obligations . Simply put, changing the terms of the bond issue – its term, coupon size, and the frequency of payments.
Liquidity . It is not always possible to sell your bonds and receive income from the sale. Bonds may fall in price, so it will only be possible to sell them with a certain loss.
Interest . This risk is more inherent in long-term bonds. There is a possibility that the rates on other bonds will become higher, and your bonds will remain with a fixed % below the market, which will mean that you will not receive any possible income. This risk is closely related to the movement of the Central Bank rate.
Inflation . There is always a risk that inflation will be higher than your yield rates. This risk is also inherent in deposits.
How to reduce risks
The first thing to note is the law of the stock market, which tells us that if we take less risk, we get less return.
Thus, OFZs are considered the most reliable bonds , but their yield rates are only slightly ahead of deposit rates and inflation.
The next most reliable are bonds of the largest companies in our country, such bonds have a rating of "AAA". The yield here is higher than on OFZ, but less than in riskier securities.
Papers with a rating of "B" are less reliable, but also more profitable. In this case, you need to study the issuer in detail, its market indicators, as well as news about this company. You also need to follow the news of this company after the purchase in order to understand the course of events, as well as the moment to get rid of these papers.
Rules for choosing a bond
Before purchasing, decide on the following bond parameters:
Currency. Will you buy ruble bonds or Eurobonds? The first will pay you a coupon in rubles, and the second in foreign currency. But the cost of Eurobonds is also higher, usually from 1000 USD.
Coupon size and yield to maturity. The yield should exceed deposit rates, but not be higher than the average market rate. High coupons mean increased risk. Pay attention to the coupon payment terms.
Maturity period. The further the maturity period, the more the bond price can change: be higher or lower than the par value. For short-term and medium-term bonds, such deviations are smaller. This information is important for you if you do not intend to hold the bond until its maturity, but want to sell it earlier. In this case, it is important that the price is higher than the par value or at least equal to it.
Issuer. Who issues this bond, what country or company is it. Read the news, read the company's reports before making your choice.