TO December for every saver the threat of a terrible enemy.
An adversary with unknown characteristics that lures us into a whirlwind of typical questions“what the hell is average inventory”, “why should I pay for it?”, “but then how is average inventory calculated?”
Yes, let’s talk about awesome stamp duty on current account.
I know, shocking and disgusting in equal measure.
Exactly the same mix of emotions that us misers feel when we have to spend some money to pay for some other (unavoidable) offer.
But let’s get back to the topic! Before explaining how the average balance is calculated, I must first explain what stamp duty is and how it works.
HOW THE INCOME TAX WORKS
If you’re a long time reader (hello, hello stinker) you’ll remember that I’ve already talked about how the stamp works quite a few times.
I didn’t just talk about state tax but also how to do it quail jumping which is not a sexual technique to avoid childbearing but a way to avoid paying this state tax.
If you are part of the clique of the past, skip to the next paragraph.
For all the other ignorant losers here I will explain this tax again.
The government stamp is one indirect tax in any type of account in which money is held. The introduction of this weight is as recent as it has been was founded in 2011 by the Modi government to save the country’s ass.
How you pay and how much you pay varies by account type.
Stamp ON CURRENT ACCOUNT
Stamp duty is paid on all current accounts they hold average stock greater than or equal to €5000 and entails an annual expenditure of €34.20.
Only citizens with the basic accounta certain type of free current account for citizens with a ISEE less than €7500 per year.
Generally the bank plays the role of withholding tax and every December 31st takes the money from your account automatically and pays it to the cashier.
This only happens if the banking institution has an Italian IBAN (IT), if you have an account abroad you will have to pay the stamp duty independently by declaring it to RW frame. In this case, the name of the stamp duty also changes: IVAFE.
Many people think they can get away with avoiding this payment by having an account abroad: this is not the case. The various organs Europeans communicate with each other (as in the DAC7) and they know very well where you keep money and what you don’t pay.
MONEY IN DEPOSIT ACCOUNT, INTEREST ACCOUNT AND SECURITY ACCOUNT
Although in a different form the stamp duty is it also exists in deposit accounts and securities investment accounts both in the case of securities accounts and postal savings bonds.
In these cases the tax is not fixed but variable and equal to 0.20% in total restrictionso you pay the money in the deposit and not in the profit obtained from the investment.
In my house it’s called hidden assets but mom claims he’s been argumentative since he was a kid.
Another difference with the checking account stamp is when it is paid:
- Quarterly
- Biannual
- Annually
You can choose the reference type in the settings but, in general, it is an automatic selection of the credit institution.
The difference in reporting makes it pretty hard to avoid this contribution. In the case of a deposit account with an annual payment simply withdraw the money before December 31 and repay the amount in early January. That is if you have a playable CD, otherwise you’re stuck.
You attack even if you have one securities account or have are invested in postal savings bonds. To avoid paying stamp duty, you’d actually have to release the investments, move the money around and then reinvest the capital at the start of the year.
To save a few hundred, you could lose thousands in investments.
Just give yourself peace of mind.
SUMMARY OF EXPENSES DEPARTMENT PAPER CURRENT ACCOUNT, VALUES AND DEPOSIT
| FINANCIAL SERVICES | CHARACTERISTICS | COST | PAYMENT DATE |
|---|---|---|---|
| Bank Account | You pay if the average inventory is greater than €5000 | €34.20 per year | December 31 of each year |
| Deposit account | Paid on the value of the investment at the time of the reference period | 0.20% on deposit | The payment date varies depending on the selected report which can be quarterly, semi-annual or annual. In some cases the trustees pay the tax for you. |
| Securities Account | Paid on the value of the investment at the time of the reference period | 0.20% on deposit | The payment date varies depending on the selected report which can be quarterly, semi-annual or annual. |
WHAT IS THE AVERAGE STOCK?
Ok, I did the overview and let’s focus on the current account.
To understand how to avoid paying current account tax you need to understand what is average inventory and how is it calculated?.
In short, the average stock is theaverage amount (hey! amazing!) of amounts in your checking account during the year.
If this amount is less than €5000 do not pay the tax, otherwise you will be kicked out.
The word “average” must it makes you think. You could have an amount of €8,000 in your current account for one week and not pay the tax because the following period the balance is zero.
So how do you independently calculate average inventory?
HOW TO CALCULATE AVERAGE CURRENT ACCOUNT BALANCE
Calculating the average annual inventory is simple arithmetic mean.
Enough add up all your daily balances of the current account for later divide the resulting sum by the days of the year: 365 for non-leap years and 366 for leap years.
If instead of having an annual report you have a quarterly or semi-annually Just use the same formula dividing by the actual days of the period under consideration.
In case that joint accounts balance and average inventory divided by the number of owners: 50% if there are 2, 33.3% if there are 3. If you have a personal account other than the joint account same institute the rest add up, so be careful when calculating.
Speaking of calculating, you can also use an Excel file!
AVERAGE STOCK CALCULATION WITH EXCEL
Usually the average stock is are automatically provided by the banking institution but if you really want to waste time you can use an excel file.
Now I haven’t made a spreadsheet, but it seems like one of the most searched topics on the internet, so it’s useful Online forum for finance with this excel downloadable:
Do not touch columns A and B. In the column C you must enter day to day The amounts credited to the account (such as bank transfers) while on column D The tariff such as card payments or outgoing bank charges.
You can do this like Neolithic people by writing down income and expenses day by day or using technology. Go to your bank’s website, download your account statementscopy from the bank’s file e paste it into Excel.
Give a squeeze of lemon, tidy up the cells, don’t undermine the formulas and in cell G10 you should see yours average annual inventory.
Pay attention to some basic rules to do the calculation correctly
- According to the indications of the Revenue Service for calculation of average inventory should always be used Balances (I have already explained this difference between the book balance and the available balance)
- His presence negative average inventory must always be entered zero value
- To complete the ISEE, the balance per currency
CONCLUSIONS ON THE CALCULATION OF THE AVERAGE STOCK
Banks now share average balance data automatic so much so that the information is already present if when you do itISEE pre-filled.
Net of special needs, keeping the 5k in the account for free doesn’t make financial sense.
Let go of me accounts with interest that deposit accounts offer good returns even in the face of recent high inflation.
But then you are gods poor slaughtered what the hell do you care about calculating the average inventory, huh?
Consider managing your money well, automate your accounts and invest all the extra liquidity in some smart product.
Come.