Russia Proposes New Tax Deduction for Parents Saving for Children
The Russian government has proposed a new tax deduction for parents contributing to children's funds. Introduced in May 2025, the bill aims to support families and encourage long-term savings. It passed its first reading in the State Duma in June 2025.
The tax deduction rate varies between 13% and 22%, depending on the NDF rate applied to the income of program participants. Parents can claim a deduction of up to 500,000 rubles per year for additional contributions to children's funds. This deduction is available for each tax period as long as the child is under 18 or 24 if they are studying full-time.
Eligible long-term savings products include long-term savings programs, non-state pension provision, voluntary life insurance, and individual investment accounts. The bill's progress is a step towards supporting families and promoting long-term financial planning.
The new tax deduction for children's funds, introduced in 2025, offers significant support to Russian families. With a potential deduction of up to 500,000 rubles per year, it encourages parents to invest in their children's future. The bill's successful first reading in the State Duma indicates progress towards its implementation.
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