Putin proposed to create a mechanism for tax deduction for shared life insurance

Russian President Vladimir Putin proposed to work out a mechanism for a tax deduction for all family members for shared life insurance. As the head of state said on December 4 during the VTB forum "Russia Calling!", such a regulatory tool will increase the interest of potential investors to work together with the state.

"From January 1, 2025 will be launched share life insurance of citizens. In essence, this combines the principle of classical insurance and investment. When a citizen simultaneously invests in assets, receives income from them and at the same time insures his life and health," the president said.

Putin pointed out that the state should guarantee the return of these funds, providing insurance in the amount of Br2 million 800 thousand. Tax incentives should also be offered - this is primarily tax deductions on the contributed amounts.

"There is a proposal to create such a financial mechanism, which will become a real family savings instrument, to allow all working family members to receive a tax deduction. Accordingly, the amount of funds subject to such a deduction should increase to at least 1 million rubles a year," the Russian leader specified.

The President asked the Russian government together with the Central Bank of Russia to determine the parameters of such a mechanism of family support. And to prepare and adopt the relevant federal laws in the near future.

Earlier, on October 10, it was reported that Russia is preparing new tax incentives for accumulative, investment and share life insurance policies (LLI, ISLI and DSLI). In the Central Bank of the Russian Federation explained that the relaxation may be similar to what is now in effect for individual investment accounts: exemption from income tax for long-term ownership of securities - from 10 years. At the same time, the Ministry of Finance is preparing amendments on tax deductions for IITs, which will be effective from 2025

At the same time, Deputy Director of the Insurance Market Department of the Central Bank Nikita Teplov told Izvestia that the Bank of Russia supports the introduction of a new benefit for long-term life insurance policies. At the same time, he said, it is not necessarily necessary to return what was there. For example, for individual investment accounts (IIS), there is a benefit that exempts from income tax after 10 years, he noted.