Are life insurance premiums taxable?

According to the current legislation, income tax and other obligatory payments to the state budget are deducted from the wages of individuals.

Therefore, in accordance with the Decree of the President “On the Avoidance of Double Taxation”, the amounts paid personally by the Insured Person to the insurance company are not subject to taxation, as they are paid after the accrual and payment of wages, that is, after taxation.

According to the Law “On personal income tax”, insurance premiums paid at the expense of the enterprise are not the income of the insured person and are not included in the monthly taxable income under long-term life insurance contracts, if the amount of insurance premiums does not exceed 15% of the salary payment of the insured person, and at the same time, the amount of insurance premiums paid by the enterprise must not exceed the amount of the monthly subsistence minimum established as of January 1 of the reporting year multiplied by 1.4.

If, in accordance with a long-term life insurance contract, a taxpayer pays at its own expense voluntary insurance payments in favor of hired employees who are in labor relations with him and who have this place as their main place of work, then such a taxpayer may include in the composition of the gross costs of each calendar quarter the amount actually paid insurance payments not exceeding 15% of the salary received by such an employee from such a taxpayer during such a calendar quarter, but not more than 6,000 per one insured employee during the reporting tax year.