Starting in 2025, Russians will be eligible to reclaim up to 88 thousand rubles from contributions made under the long-term savings program. This development was announced by Ruslan Vesterovsky, Senior Vice President of Sberbank’s Asset Management division, who detailed how the new rules will function and who stands to gain.
The actual refund amount hinges on the individual taxpayer’s income tax rate. In explaining the mechanics, Vesterovsky gave concrete examples to illustrate the impact of different tax brackets on the same level of contributions.
For instance, a person paying personal income tax at a rate of 22% in 2024 and depositing 400 thousand rubles into a personal investment and savings account could receive a refund of 88 thousand rubles. By comparison, an individual taxed at 13% with a similar contribution would see a refund of 52 thousand rubles, highlighting how tax level directly influences the benefit under the program.
The adviser emphasized that the current tax deduction cap remains at 400 thousand rubles. This cap applies across a range of financial instruments, including the long-term savings program, individual investment accounts, and non-state pension agreements, ensuring a consistent framework for deductions across these vehicles.
Vesterovsky also suggested that there could be a reconsideration of the deduction limit in the future. The cap, which was established roughly a decade ago, has not been adjusted in that period. He noted that increasing the limit to 1 million rubles would give Russians more flexibility to plan and optimize their long-term savings and investments, aligning the policy with evolving financial goals and market conditions.
The discussion comes in the wake of a recent legal change, as President Vladimir Putin signed a law amending the Tax Code of the Russian Federation. The amendment signals a broader push to refine tax incentives linked to savings and investment accounts, potentially shifting how individuals engage with these financial tools in the coming years.
Observers point to several practical implications of the reform. First, higher earners standing in the 22 percent bracket could realize a meaningful boost in after-tax savings when they contribute to eligible accounts, strengthening the appeal of long-term investment strategies. Second, the unchanged 400 thousand ruble cap provides a known limit that families and investors can plan around, avoiding unexpected shifts in aggressive tax planning. Third, the possibility of lifting the cap to 1 million rubles could broaden participation, particularly among middle-income households looking to secure future financial goals through structured savings and investment vehicles.
Market participants are watching how banks and asset management firms translate the policy into accessible products and clear guidance for clients. In practical terms, the reform is expected to influence the design of tax-advantaged accounts, the way contributions are structured, and the messaging used to help residents understand the potential refunds available to them. While the specific refund amounts will always depend on individual tax rates and contribution levels, the overall framework is shifting toward more generous and flexible savings incentives, provided the taxpayer remains compliant with the updated tax legislation.
Experts stress that, beyond the immediate refund amounts, the broader objective is to encourage longer horizons for savings and capital formation. By aligning tax relief with steady, purposeful investments, the state aims to support households in building financial resilience and planning for retirement, education, or large life purchases. As the tax code evolves, individuals are advised to review their current savings mix and consider how adjusting contribution levels or selecting appropriate accounts could maximize their after-tax benefits in the years ahead.
In sum, the changes set a tangible path for enhanced savings efficiency under the long-term savings program and related accounts. The continued dialogue between policymakers, financial institutions, and taxpayers will determine how these provisions are implemented in practice, and how best to balance incentive, accessibility, and compliance for a broad base of investors across the country.