Russian Federation

Individual - Deductions

Last reviewed - 23 September 2020

Note that certain deductions described below are classified as 'social deductions'. The deductions are available only to tax residents and are generally limited to RUB 120,000 per year.

Employment expenses

As of 1 January 2007, an employee’s pension contributions to voluntary licensed plans are tax deductible from the taxable base within the limits established for social deductions.

Personal deductions

Charitable contributions

Donations to certain non-commercial organisations (from 2012) and qualifying charities are deductible from taxable income (within the limit of 25% of the individual’s income subject to 13% tax rate [except dividend income]).

Education expenses

Individuals can deduct from taxable income the costs of their own education in licensed institutions (within the limits established for social deductions) and their children’s education in educational institutions (without the limits established for social deductions but not more than RUB 50,000 per child).

Expenditures to acquire or construct an apartment or house

Expenditures incurred by an individual on the acquisition or construction of an apartment or house and related plot land, as well as payment of interest on the respective loans, are allowed as a deduction of up to RUB 2 million with respect to expenditures plus the amount of interest of up to RUB 3 million. This once-in-a-lifetime deduction is available only to tax residents.

Medical expenses

Individuals can deduct from taxable income the costs of medical services (for themselves and close relatives) and medicine (generally within the limits established for social deductions).

Personal exemptions

An exemption of RUB 1,400 per month is available for a first and second child and RUB 3,000 for a third and each subsequent child. These exemptions are provided until the individual’s cumulative annual income reaches RUB 350,000.

Business deductions

The ability to apply business deductions depends on the activities and on the taxation system applicable to the activities of the individual.

Losses

Losses are not taken into account for tax purposes, with the exception of securities transactions and controlled foreign company (CFC) losses.