The State Duma approved the law on personal income tax deductions for long-term savings of citizens

The State Duma adopted in the second and third readings law on the introduction of a personal income tax deduction of up to 400 thousand rubles. per year for long-term savings of citizens. The initiative was proposed by the government in October 2023.

According to the law, a personal income tax deduction is provided in the amount of pension contributions paid under non-state pension agreements; paid savings contributions under long-term savings agreements formed with a non-state pension fund (NPF); funds deposited into IIS-3 from January 1, 2024, as well as income from transactions on an individual investment account.

When allocating a deduction, several conditions will be taken into account: receipt of a non-state pension; validity of a long-term savings agreement for at least 10 years (during the transition period, at least 5 years with an annual increase in the term by 1 year up to 10 years);

The law also cancels investment tax deductions for personal income tax on income from the sale of securities of foreign issuers. The exception is securities registered in the states of the Eurasian Economic Union.

The explanatory note states that the law will create favorable tax conditions for long-term savings of citizens and the influx of investments into the financial market. The changes will oblige non-state pension funds to transfer information related to the conclusion of long-term savings agreements to the tax authorities, this will ensure control over deductions.

About voluntary pension savings – in the material “Kommersant” “Conditional early pension”.