Tax deductions
printWhat is tax deduction
A tax deduction is an item or expense subtracted from gross income to reduce the amount of income subject to tax. The most common deductible expenses are purchase of real estate, education and medical treatment expenses. In Russia, if you receive your income from your employer (as opposed to some types of investments, self-employment), usually your employer withholds the income tax from your salary, in which case you receive your after tax income. If you are a tax resident and you are eligible for any of the tax deductions, you may return some of the income tax paid by applying for tax refund. This can be done by filing the 3-NDFL form with all the required supporting documents.
Types of income tax deductions
There are five types of tax deductions in Russia - standard, social, related to property, related to securities and professional tax deductions. Standard deductions are granted under certain conditions – the tax payer’s income does not exceed certain amount, the taxpayer has children, etc. Social tax deductions are applicable if the taxpayer incurred certain expenses - paid for medical treatment or education for her/himself or for her/his children, etc. Property deductions are applicable if the taxpayer sold some property or bought real estate. Professional deductions are applicable to certain categories of taxpayers, for example, the authors of books, artists, etc.
Only tax residents are eligible for income tax deductions
Only tax residents are eligible for tax deductions associated with the income tax. An individual is usually considered to be a tax resident if she/he lives permanently in Russia and spends not less than 183 days in Russia in the year for which the tax return is submitted. An individual is usually not considered to be a tax resident if she/he spent less than 183 days in Russia in the year for which the tax return is submitted. Tax residency status does not depend on the citizenship.
How to get deductions with Nalogia
In the section of our website "Useful" you can find the list of documents you need to receive tax deductions, application forms, forms of the tax returns, instructions and software to prepare all necessary documentation. Besides, you can order preparation of all necessary documentation to Nalogia's consultants. In case you order tax preparation, our consultants will carefully, fast and conveniently prepare everything for you. You will get the documents not leaving you apartment of office.
Valid as of 18.05.2012
