Bank Cashback: Not Subject to Personal Income Tax
Tax authorities clarify: Loyalty cashback stays tax-free, but interest isn't
Cashback—funds or bonuses received through bank loyalty programs—is not considered taxable income and is exempt from personal income tax (NDFL).
Exceptions apply when cashback is received: - Outside a public offer; - As part of an employment relationship; - As payment for services rendered, work performed, or goods supplied.
Interest income from bank deposits (or account balances), however, remains taxable. Tax authorities calculate NDFL based on data provided by banks, which can be reviewed in the Personal Taxpayer Account under "Income Information" → "Deposit Interest."
Banks report the total annual interest earned by an individual across all deposits and accounts, without breaking it down by individual transactions. If the reported figures do not match the taxpayer's records, they should contact their bank for clarification.
The tax on deposit interest will be calculated by tax authorities using bank-provided data and included in the taxpayer's official notice.
Note: NDFL on deposit interest for 2025 has not yet been assessed by tax authorities.
Contrary to recent media reports, claims that tax authorities have begun taxing bank cashback are untrue. If taxpayers have questions about income reported by their bank, they are advised to contact their financial institution directly.
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