Deduction for health and fitness services starting from 2022

LEGAL DIGEST, NEWS \ 30.08.2021

On August 1st, 2021, a Law came into force that establishes a new type of social tax deduction for individuals – a deduction for income tax in terms of expenses for health and fitness services.

According to the law, the deduction can be used if the following conditions are met at the same time:

• an individual applying for a deduction is a tax resident of the Russian Federation;
• an individual receives income subject to income tax at the rate of 13%;
• an individual paid for health and fitness services at his or her own expense. At the same time, such services can be provided directly to an individual or his or her children (including adopted ones) or persons under wardship under the age of 18.

The deduction applies to expenses actually incurred since January 1, 2022, and those health and fitness services that:

• are included in the list of types of health and fitness services approved by the Decree of the Government of the Russian Federation;
• are provided by physical culture and sports organizations that carry out activities in the field of physical culture and sports as the main type of activity.

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, namely:

• training of an individual or his or her relatives;
• medical treatment of an individual or his or her relatives;
• purchase of medicines and voluntary health insurance policies;
• charity or donations;
• non-state pension provision, voluntary pension insurance, voluntary life insurance;
• additional insurance premiums for a funded pension.

To obtain a deduction, an individual can apply to an employer or to the tax inspectorate at his or her place of residence.

When an individual applies to an employer, it is necessary to provide an application and confirmation of the right to deduction, previously received from the tax authorities, as well as attach a copy of the contract for the provision of health and fitness services and a cash register receipt for payment for such services. The deadline for receiving a deduction from the employer is within 2022 from the month of the individual’s application.

If an individual applies to the tax inspectorate, then he or she should submit a declaration in the form 3-NDFL for 2022 and attach the same supporting documents. These documents should be sent to the tax authority after January 1, 2023.

Please be reminded that the amount that reduces the amount of income subject to income tax is recognized as a tax deduction for income tax. Such a reduction leads to a reduction in the amount of tax.

Deductions are divided into types and subtypes, depending on their purposes. The amounts and conditions of their application differ considerably. Most often, individuals whose income is subject to income tax at the rate of 13% can be provided with the following deductions: standard, social and property.

In the matters of granting tax deductions, please contact Acsour experts.