Contents / tax base

General amount of standard deduction per month is:

• on the taxpayer himself - 400 Rb.
• on the taxpayer's children - 300 Rb. per each child

Deductions are made by one of tax agents upon decision of the taxpayer, every month until taxpayer's income exceeds 20,000 Rb (calculated by progressive total).

If standard deductions have not been granted or have been granted short, due deduction is granted at filing the tax return.

Employees moving to another job in the course of the year receive standard deductions on the basis of the reference issued by previous employer.

Certain taxpayers (veterans, the disabled and some other) may enjoy bigger deductions - 500 Rb or 3,000 Rb per month.

Standard deductions are not granted for remuneration under civil law contracts.

When filing its tax return, a taxpayer may be granted the following types of social deductions:

• Deduction for the education of a taxpayer
• Deduction for medical treatment
• Charity deductions to the amount of made contributions

These deductions are only granted in respect to income taxed at the rate of 13%. The unused portion of deductions may be carried forward to future tax periods.

Property deductions are granted to the taxpayer in the following cases:

• the taxpayer incurs expenses related to construction or acquisition of property (up to 1 mln. Roubles)
• the taxpayer derives income from sale of property. The amount of deduction depends on the type of real estate and the period during which the property was in the taxpayer's ownership

Instead of using his right to property deduction the taxpayer may reduce taxable income by actually incurred and documentary certified expenses related to deriving income from sale of property (except for securities). To property deduction on income derived from sale of securities a special order is applied.

Property deductions are granted upon application of the taxpayer when filing the tax returns

The deduction is not granted on income of individual entrepreneurs derived from sale of property in the course of business activity

Professional deductions are granted to the following persons:

• individual entrepreneurs, private notaries
• Persons performing work or rendering services under civil law contracts
• Persons deriving income under licensing and copyright contracts or from inventions or industrial samples

Deduction for taxpayer's child is granted to both parents not older than 18 (or not older than 24 for full-time students)

Deduction on education in educational institutions having an appropriate license to the amount of actual expenses but not more than:

• 38,000 Roubles for the taxpayer's education (including part-time), and
• 38,000 Roubles (for both parents) for the education of each taxpayer's child (full-time students) at the age of under 24

The deduction is granted during the whole period of education (including academical leaves) if appropriate documents certifying actual expenses on education

Expenses on medical services in medical institutions of the RF of the taxpayer, his spouse, parents and under-age children, as well as on acquisition of prescribed pharmaceuticals to the amount of actual expenses but not more than 38,000 Roubles. Expenses on several high-priced types of medical treatment are subject to deduction without limitation (list approved by the Government)

The list of medical services and pharmaceuticals which are subject to deduction is approved by the Ordinance of the Government

The deduction is granted if the taxpayer submits documents certifying actual expenditures on medical treatment and pharmaceuticals

Deduction to the amount of actually incurred expenses but not more than 25% of the taxpayer's income is granted if the money is transferred in favour of scientific, cultural, educational, medical and social institutions financed at the expense of respective budgets, organisations of physical culture and sport, educational and pre-school institutions for the purposes of physical training and support of sportsmen and sport teams, as well as in favour of religious organisations in the form of donations for carrying out their charter activity.

The deduction is granted to the amount of:

• actually incurred expenses but not more than 1 mln. Rb. spent on construction or acquisition of residential premises on the territory of the RF
• refunded interest on mortgage lending received by the taxpayer in RF banks and actually spent on construction or acquisition of residential premises on the territory of the RF

The deduction is granted on the basis of taxpayer's written request and documents certifying the taxpayer's title to the premises and respective payment documents

If the deduction can not be utilised to the full in a tax period, the rest of it may be carried forward to future tax periods.

The deduction is not applied to sale-purchase of real estate by interdependent persons

The deduction is granted to the amount of:

• income derived from sale of residential premises, apartments, country houses and land plots owned by the taxpayer:
  • at least five years - up to 1 mln. Rb.
  • five years and more - within the sale price
• income derived from sale of other property, share (or its portion) in the statutory capital of an organisation owned by the taxpayer:
  • less than three years - up to 125,000 Rb.
  • three years and more - within the sale price

Individual entrepreneurs may deduct incurred and documentary certified expenses related to income derived. Expenses are deducted in the same order as for the purposes of tax on profit. If the taxpayer cannot prove the expenses with appropriate documents, the deduction is granted to the amount of 20% of the taxpayer's income

The deduction is granted when the taxpayer files the tax returns

These persons may deduct incurred and documentary proved expenses related to performance of work (rendering services). Expenses are deducted in the same order as for the purposes of tax on profit.

The deduction is granted by the tax agent (the person who pays out the derived income) on the basis of a written request of the taxpayer

Persons receiving royalties may deduct incurred and documentary certified expenses, in case that the expenses cannot be proved - to the amount fixed in the Tax Code (from 20 to 40% of the income derived)

The deduction is granted by the tax agent (the person who pays out the derived income) on the basis of the taxpayer's written request. In case of lack of the tax agent the deduction is granted when the taxpayer files his tax returns