Central Bank and government aim to improve the mechanism of individual investment accounts
MOSCOW, November 29 – RIA Novosti. While the Bank of Russia and the government of the Russian Federation plan to improve the individual investment accounts (IIA) mechanism, including increasing the annual contribution limit and giving the opportunity to partially withdraw funds, the regulator offers to support it as follows: tax incentives only for Russian investments, not foreign assets project “Main directions for the development of the financial market of the Russian Federation for 2023-2025”.
In addition, the regulator plans to introduce type III IIS with a ten-year investment horizon. Such accounts will also benefit from a combination of tax incentives provided for first and second type accounts. The preferential annual renewal limit of IIS type III will be 6% of the charges.
“The Central Bank of Russia does not consider it appropriate to encourage Russian citizens to invest in foreign assets at the expense of budget funds. In this context, the tax base for income from IIA type III will be assessed separately for Russian and foreign assets, and the Central Bank will ensure that income assistance is only available in Russian. The document also says that the share of Russian assets in IIS type III should not be less than the amount determined by the Tax Code.
The regulator also plans to expand the list of financial intermediaries and platforms that IIS can open: It may include NPFs, mutual fund management companies (UIFs), and financial platforms.
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