On August 1, 2021, Russia introduced an income tax deduction for health and fitness services costs. The deduction applies to expenses incurred from January 1, 2022.
What are the conditions required for the deduction to apply?
- The individual is a tax resident of the Russian Federation.
- The individual receives income subject to income tax at the rate of 13%.
- The individual paid for health and fitness services themselves.
What health and fitness services are eligible?
- The service must be included in the list of types of health and fitness services approved by the Decree of the Government of the Russian Federation.
- The service must be provided by physical culture and sports organizations.
What is the maximum deduction?
The maximum deduction amount is 120,000 rubles. This limit applies in combination with other expenses that are included in the social deduction for the calendar year, such as
- training of an individual or their relatives
- medical treatment of an individual or their relatives
- purchase of medicines and voluntary health insurance policies
- charitable donations
- non-state pension provision, voluntary pension insurance, voluntary life insurance
- additional insurance premiums for a funded pension.
What is the application process?
Individuals can apply for this deduction to an employer or the tax inspectorate at their place of residence. When applying to their employer, the individual must provide an application and confirmation of the right to deduction, from the tax authorities, plus a copy of the contract for the provision of health and fitness services with a cash receipt for payment of such services. If an individual is applying to the tax inspectorate, they must submit a declaration in the form 3-NDFL for 2022 and attach the same supporting documents. These documents will then go to the authority after January 1, 2023.
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