In Russia, they proposed to triple the amount for the maximum social tax deduction, from 120 thousand rubles to 360 thousand, about this in their Telegram-the channel was told by one of the authors of the initiative, the head of the Duma Committee on Labor, Social Policy and Veterans Affairs Yaroslav Nilov.
Deputies from the LDPR faction and Senator Sergei Leonov must submit a bill to the State Duma, according to which Russians will be able to claim a tax deduction from the amount of 360 thousand rubles.
This money is claimed by Russians who are tax residents and receive income taxed at a rate of 13 percent. They can recover some of the costs of their education, children’s education, medical treatment, retirement savings and an independent assessment of their qualifications.
The mechanism allows citizens to reimburse part of the expenses incurred for these purposes by returning personal income tax from the budget. The deduction amount, based on the limit of 120 thousand rubles of expenses and a 13% tax rate, does not exceed 15.6 thousand rubles.
From August 1, 2021, citizens can receive a tax deduction for money spent on sports. The maximum amount for deduction is also 120 thousand rubles, the amount of the deduction is 15.6 thousand.
The authors of the bill call for increasing the maximum amount for social tax deduction three times at once – from 120 to 360 thousand rubles. This will allow Russians to return the maximum 46.8 thousand rubles of personal income tax paid by them for the tax period. If the law is passed, it is expected to enter into force on January 1, 2022.
The current limit of 120 thousand rubles was set ten years ago (from January 1, 2009) and has never been indexed since then. The authors of the initiative recalled that prices for higher education in Russia have since tripled since then. Medicines rose in price annually by an average of ten percent, and the ruble has depreciated almost three times over this period.
The standard of living of the population has fallen over the past decade. According to Rosstat, in 2020 the real incomes of Russians decreased by 3.5 percent and turned out to be 10.6 percent below the level of income in 2013. Anti-crisis social payments, including increased unemployment benefits and payments to families with children, did not have a positive impact on the situation. According to the Central Bank of Russia, inflation in 2021 will be higher than predicted; as of March 15, prices increased by 5.8 percent.
In May 2021, Russians’ real disposable income plummeted to a record low since 2009 as the coronavirus put more pressure on a stagnant economy. Household incomes declined nearly five percent in the first quarter of this year compared to the fourth quarter of 2019.
Social tax deductions can be obtained by filing a personal income tax return to the tax office at the place of residence of the taxpayer at the end of the year with copies of documents confirming the right to deduction. You can also submit an application online, in your personal account on the website of the Federal Tax Service.