Businesses in Russia could potentially receive tax incentives if they cover a portion of their employees' mandatory pension payments.
📣 Breaking News! 💰 Russia gears up for a game-changer! By 2026, President Putin's proposition for businesses to co-fund their employees' long-term savings programs, proposed as far back as June 2024 during the St. Petersburg International Economic Forum, might become a reality. 🌟
Not a big deal? Think again! 🙅♂️ The new tax break would allow businesses to co-finance up to 12% of their payroll fund towards their employees' savings, and they can claim these contributions as business expenses, reducing their taxable income, according to Sergei Beliakov, president of the National Association of Non-State Pension Funds (NAPF). 💰📊
It's not just any bunch of companies backing this move. The NAPF, Sberbank, VTB, and Gazfond NPF are already on board! 🚀 VTB thinks it's only logical for businesses to decide their co-financing rate based on their manpower needs. Meanwhile, Sberbank's senior vice president, Ruslan Vesterovskiy, believes the tax incentives could spur a significant surge in long-term savings program participants and investments, also encouraging businesses to beef up their social benefits packages - a big plus in a tight labor market. 💼
- This groundbreaking move, if implemented, could potentially transform the industry landscape, as leading players like NAPF, Sberbank, VTB, and Gazfond NPF are keen to participate in the new business-funded long-term savings programs.
- The finance sector is anticipated to experience a significant shift, with the banking-and-insurance sector expected to be particularly impacted, as the proposed tax incentives could encourage a surge in investments for long-term savings programs, attracting more businesses to enhance their social benefits packages.
