The Government of the Russian Federation has approved draft amendments to tax legislation aimed at improving tax instruments for generating long-term savings. This is reported on the website of the Ministry of Finance.
In accordance with the draft law, it is proposed to take into account employers' savings contributions under the long-term savings program (LDS) as part of income tax expenses, as well as not to impose insurance premiums on them.
At the same time, savings contributions will be included in expenses in the amount not exceeding 12% of the total labor costs, and insurance premiums will not be subject to amounts within 12% of the base for calculating insurance premiums for a specific employee for the billing period.
The bill specifies the minimum period for receiving a deduction. When checking the condition on the minimum period for obtaining a tax deduction, it is proposed to take into account the fact that a citizen has applied for payment under a long-term savings agreement, rather than the time when the grounds for assigning such payments arise.
When transferring all funds from a long-term savings account to a new contract, it is proposed to set off the validity period of the old contract terminated with such a transfer.
Regarding the tax base for income received in the form of payments under a long-term savings agreement, it is proposed to set the personal income tax rate at 13% (15%), depending on the amount of tax bases.
Thus, it will be equal to the rates currently in effect for insurance payments under insurance contracts, pension payments, as well as income from securities transactions and transactions with derivative financial instruments accounted for in an individual investment account (IIS).
The bill extends the possibility of receiving a tax deduction for long-term savings of citizens for insurance premiums under life insurance contracts. Among other things, we are talking about shared life insurance contracts, which became available to citizens on January 1, 2025.
It is envisaged to preserve the possibility of applying the old procedure when determining the personal income tax base for insurance payments under life insurance contracts.
The draft amendments propose to preserve the possibility of applying the old procedure for life insurance contracts concluded before December 31, 2024 for a period of 3 years or more in respect of part of insurance payments generated from investment income for each year of the contract until 2025.
In addition, for contracts with a validity period of more than 5 years, it is possible to apply the old procedure or exemption from personal income tax of insurance payments exceeding the amount of insurance contributions in the amount of up to 30 million rubles.
However, the changes will not apply to life insurance contracts for which the insurance premium was increased after June 30, 2024. Also, the changes will not apply to life insurance contracts that stipulated the possibility of their renewal.
