State Duma approved a draft law exempting banks from VAT on interest paid in precious metals, aiming to boost deposits and reduce legal disputes.
Russia’s lower house of the Federal Assembly (State Duma) approved at first reading a draft law that would exempt from VAT operations involving banks paying interest in precious metals under a bank account or deposit agreement in precious metals.
Interest on deposits in Russian and foreign currency is not subject to VAT. The proposed changes would thus align VAT treatment for deposits in precious metals with that of other types of bank deposits.
The draft law also clarifies the possibility of applying the VAT exemption for banks placing precious metals not attracted through deposits. Taxation should not depend on the source from which the bank acquires the bullion. The VAT exemption would apply both to precious metals placed by the bank from deposits and those purchased by the bank.
The proposed changes are expected to increase the attractiveness of deposits in precious metals. Additionally, the draft law aims to prevent tax and legal disputes that could arise from legal uncertainty in this area.
This announcement was made by Russia’s Ministry of Finance on 14 October 2025.
