Receiving Social Tax Deductions in a Simplified Procedure
The procedure for obtaining a tax deduction has become simpler. Now, you can apply for a deduction not only by submitting a tax return using Form 3-NDFL but also through a simplified process via the online service “Personal Taxpayer Account for Individuals.”
Under the simplified procedure, in accordance with Article 221.1 of the Tax Code of the Russian Federation, the following personal income tax (PIT) deductions can be obtained:
Starting from January 1, 2024:
- Social tax deductions (Article 219 of the Tax Code), specifically:
- for education expenses;
- for medical expenses;
- for expenses on fitness and wellness services;
- for insurance premiums under voluntary health insurance (VHI), voluntary pension insurance, and voluntary life insurance contracts;
- for pension contributions under non-state pension provision contracts.
Starting from January 1, 2025:
- Tax deductions for citizens’ long-term savings, specifically:
- in the amount of savings contributions under long-term savings agreements concluded with non-state pension funds (subparagraph 2, paragraph 1, Article 219.2 of the Tax Code);
- for operations on individual investment accounts opened on or after January 1, 2024 (subparagraphs 3 and 4, paragraph 1, Article 219.2 of the Tax Code).
The proactive deduction process involves the tax authority receiving information about the taxpayer’s actual expenses for the services rendered via telecommunication channels directly from organizations and individual entrepreneurs providing such services, provided they have the technical capability to exchange such data with the Federal Tax Service of Russia.
If the taxpayer is eligible for such deductions, a pre-filled application is sent directly to their Personal Account by the tax authority for the taxpayer’s approval.
The simplified procedure for granting social tax deductions applies to expenses incurred from January 1, 2024.
