Pension deposits will save Russians up to 400 thousand rubles in taxes

Fiscal deductions for personal income tax should set citizens up for long-term savings

The State Duma adopted in the first reading a bill introducing tax deductions for personal income tax on citizens’ long-term savings. Mainly, fiscal concessions will concern pension savings of Russians made in non-state funds on a long-term basis – for a period of at least 10 years. Such deposits will allow you to count on fiscal compensation of 400 thousand rubles. Experts are confident that such compensation will cause little demand from the population: some barely have enough money to currently support their normal life, while others simply won’t live long enough to receive government support.

The government bill on the introduction of personal income tax deductions for long-term savings of citizens has already been adopted by the State Duma in the first reading. The document provides for compensation of paid pension contributions under agreements providing for the payment of a non-state pension, savings contributions paid to the same organizations under long-term savings agreements, as well as funds deposited into an individual investment account opened since 2024 (income received by pension funds under IIS will also be taken into account). As a result, such tax deductions can amount to up to 400 thousand rubles per year.

Fiscal deductions, according to the explanatory note of the bill, can be obtained under a certain condition: a person began saving for a dignified old age in private pension funds, and his savings agreement must be valid for at least a decade). The current investment tax deductions for personal income tax in relation to IIS opened before December 31, 2023 are also preserved. But the provision of an investment tax deduction for the tax on personal income received from the sale of securities of foreign issuers (with the exception of companies registered in the EAEU) is cancelled.

According to Nikita Maslennikov, a leading expert at the Center for Political Technologies, it is necessary to reduce taxation of pre-retirement Russians and such fiscal support could be implemented through appropriate legislative mechanisms much earlier. The funded pension in our country has been frozen since 2014. Deductions of 6% of employee salaries are sent to the insurance part, which goes to payments to current pensioners. “About 7-8 million citizens who previously took advantage of the logistics offered now regret their previous action – officials use the money they contributed (and this is not much, not a lot – 10 trillion rubles) to cover current pension costs. The future will show the demand for the new tool. Determining public interest in such a service will take from one to four years. However, the effectiveness of tax breaks, that is, the state’s hope for increasing long-term contributions of Russians to pension “campaigns,” may not come true: many of our compatriots simply do not have the money for future contributions, and some are confident that they simply will not live to see their pension age.”