Playing for a long time: incentives for long-term savings will work in Russia
A law has been passed in Russia regarding the long-term savings program. It expands the universal benefits for the participants of the PDS and adds addressable ones. Izvestia figured out exactly what changes are coming into force, what advantages Russians will receive when forming long-term savings and how to use them correctly.
"Children's" savings
On November 17, Vladimir Putin signed a law extending tax benefits for participants in the long-term savings program (LDS).
The PDS has been operating in Russia since 2024. Russians participating in the program can conclude a long-term savings agreement with an NPF or a management company and receive government co-financing of their contributions in the amount of up to 36 thousand rubles per year for 10 years. In addition, program participants are entitled to a personal income tax deduction from contributions of up to 400 thousand rubles per year.
The amendments, in particular, relate to parents making contributions for the benefit of their children. For them, the personal income tax deduction for long-term savings products (AIS-3, PDS, NGO and others) increases from 400 thousand to 500 thousand rubles each.
In fact, the state compensates up to 130-150 thousand rubles of personal income tax annually until the child turns 18 or 24 years old in full-time education, says Olga Gogaladze, an economist and expert on financial markets.
Ruslan Spinka, Director of Sales and Customer Service at Fontvielle IC, clarifies that parents could open an account in favor of their children and form long-term capital on it within the framework of the social security fund using the state co-financing mechanism earlier.
— However, now it is possible to receive an increased deduction. That is, two parents with a personal income tax rate of 13% will be able to return 130 thousand rubles a year by investing in long-term products (IIS, PDS and NGOs). At the same time, at least 100 thousand. they should be directed specifically to the children's account in the program, otherwise the benefit will not work," the financier explained.
"Adult" savings
Additional tax benefits apply only to contributions for children. If we are not talking about children's savings, the terms of the program for participants in terms of refunds remain the same.
At the same time, personal income tax rates on personal income tax are aligned with other long-term products. Payments under the PDS will be subject to personal income tax at the rates of 13% or 15%, depending on the amount of the tax bases. Higher progressive income tax rates (18-20-22%) will not be applied.
— The basic program participants can return their personal income tax from 400 thousand rubles. That is, if we take the example of a family without children, where two adults invest 400 thousand rubles a year through long-term instruments with a personal income tax rate of 13%, the two of them will be able to count on a return of 104 thousand rubles. Even if they invest 1 million rubles, the maximum return level will not change," says Ruslan Spinka.
At the same time, the state co-financing of the PDS is not considered as income subject to immediate taxation. It is included in total savings and is taxed only at the exit, and then in a preferential regime that minimizes the tax burden, adds Evgeny Shatov, partner at Capital Lab.
Removing restrictions
In terms of "adult" long-term savings, market participants identify a key innovation that significantly expands the opportunities of program participants: the elimination of age restrictions.
Previously, citizens who had less than five years left before reaching the age of 55/60 (women and men, respectively) did not have the right to a tax deduction in case of payment of savings contributions under long-term savings agreements (DDS).
— Now the right to a tax deduction arises if the participant does not apply for payments (after the grounds for their appointment have arisen) during the minimum term of the contract (five years for contracts concluded in 2024-2026). In fact, the law shifted the focus from the "age of entitlement" to the "accumulation period" in the program, explains Vladislav Kondrashov, Product Director at Gazfond PN.
That is, he explains, citizens aged 50+ (for women) and 55+ (for men) can now fully participate in the DDS and receive a tax deduction, simply without applying for payments before the expiration of the five-year term from the year of the conclusion of the DDS.
— For example, Elena, 54, signed a long-term savings agreement in 2024. In 2025, Elena planned to receive a tax deduction for contributions paid in 2024, as she is a personal income tax payer. At the same time, a refusal came from the Federal Tax Service due to the fact that before the onset of the grounds for payments (age 55) Elena had less than five years left," the expert gives an example.
Now, according to him, the situation has changed: Elena can receive a tax deduction in 2025 for contributions paid a year earlier. At the same time, in order to maintain the tax deduction, Elena should not apply for payment under the DDS earlier than 2029, that is, within five years from the date of the conclusion of the DDS," explains Kondrashov.
HR tool
The law also encourages employers to participate in the formation of long-term savings of their employees. The cost of co-financing these savings in the range of 12% of the salary of each employee can be deducted from the income tax base, and they will not be subject to insurance premiums.
According to Evgeny Shatov, this is a convenient tool for employers that allows them to use the PDS as an element of personnel policy, a kind of "non-financial salary."
As the analyst explains, this is beneficial for the employer for two reasons. The first is to reduce staff turnover, which is critical for many industries. The second is to increase employee loyalty: the PDS actually turns into a social option that is cheaper for the company than a direct salary increase, but more valuable for the employee because of the tax advantages and long-term nature.
— This combination actually makes it cheaper for the employer to participate in the PDS by about a third. For companies with a stable financial model, this can become a new tool for staff motivation, especially against the background of the labor market, where retaining qualified employees is becoming an increasingly difficult task," Olga Gogaladze believes.
Analysts believe that the new incentives should significantly increase the demand for personal income tax in Russia, as they create an understandable and predictable system for encouraging long-term savings among the population. For the economy, this will be an important step towards developing a full-fledged long-term money market.
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