I was told that a tax will be deducted from a one-time payment of pension savings, is this true and what is its amount?
Yes, the Tax legislation provides for withholding of income tax in case of early withdrawal of pension savings in order to improve housing conditions and (or) pay for treatment. Pension contributions received on the individual pension account of the depositor are not subject to individual income tax (IIT). Therefore, pension savings are subject to taxation upon payment.
However, when receiving a one-time pension payment, the depositor is given the right to choose – the PII can be paid in a lump sum or deferred-monthly in equal parts for no more than sixteen years at retirement (according to the schedule established by the UAPF for pension payments).
If the depositor decides to pay the IPN immediately in full, then he must indicate in the application the amount for withdrawal, minus the IPN, in the amount of 10%.
Both amounts are already indicated in the statement provided by the UAPF to the depositor, for his convenience and independent decision - making. The amount specified by the depositor for withdrawal will be transferred from the UAPF to its special account opened with an authorized operator.