Putin instructed to introduce a tax deduction for life insurance

Following the VTB investment forum "Russia Calling!", Russian President Vladimir Putin instructed the government and the Central Bank of Russia to legislate a tax deduction for funds spent on life insurance. The list of instructions was published on the Kremlin' s website on January 16.

"[Legislatively ensure] the provision of a tax deduction for personal income tax in respect of amounts paid by individuals under share life insurance contracts and other long-term life insurance contracts within the amount of the tax deduction for long-term savings contracts," the list said.

Putin also instructed to create a financial mechanism, which will become a family savings instrument and will allow all working family members to receive a tax deduction. The amount of funds subject to such a deduction will be up to 1 million rubles per year.

The government and the Central Bank should ensure the introduction of changes in the legislation of the Russian Federation until July 15.

Earlier, on December 4, Putin proposed to work out a mechanism for a tax deduction for all family members in the case of shared life insurance. According to the head of state, such a regulatory tool will increase the interest of potential investors to work together with the state.