MOSCOW, March 23 Russian President Vladimir Putin signed a law introducing personal income tax deductions for citizens' long-term savings. The corresponding document is posted on the website of the official publication of legal acts.
Deductions for personal income tax will be provided in the amount of: paid pension contributions under agreements on the payment of non-state pensions upon reaching retirement age; paid savings contributions under long-term savings agreements concluded with a non-state pension fund (NPF); funds deposited into an individual investment account (IIA) opened starting from January 1, 2024, as well as income from transactions on such an IIA.
Tax deductions in the amount of pension (savings) contributions paid and funds deposited into IIS will be provided in the total amount of 400 thousand rubles per year. Moreover, these deductions can be obtained under certain conditions: for example, a long-term savings agreement must be valid for at least 10 years; contract for maintaining an individual information system – also for a minimum of 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 preserves the current investment tax deductions for personal income tax for individual investment accounts opened until December 31, 2023. At the same time, investment tax deductions for personal income tax on income from the sale of securities of foreign issuers, with the exception of those registered in the EAEU, are cancelled. An exception is also made for shares received as a result of the allocation of blocked assets of mutual investment funds to a closed mutual fund.
The law also simplifies the procedure for providing tax deductions for long-term savings and exempts services for the formation of such savings from VAT.
At the same time, the law obliges NPFs to inform the tax authorities about concluded and terminated contracts for non-state pension provision and long-term savings. Penalties are being introduced for non-state pension funds and tax agents for providing false information as part of the simplified procedure for obtaining tax deductions.
The fine will be 20% of the amount of the tax deduction illegally received by the taxpayer. A similar liability is now provided for tax agents for submitting false information on IIS.
The law comes into force on the date of its official publication, the provisions on fines — a month after that, and the rules on the obligation of non-state pension funds to provide information to tax authorities under relevant agreements — from January 1, 2025.