The size of the tax deduction for treatment purposes in Russia has grown starting January 1, 2024. This aligns with changes in federal law that broadened relief for medical costs, reflecting an official update in the legal framework widely used across the country.
Under the new rules, the maximum amount of the tax deduction for treatment rises by 150 thousand rubles, up from the prior ceiling of 120 thousand rubles. This increase expands the opportunity to reduce taxable income for individuals incurring medical expenses, making healthcare costs more affordable for many families and residents.
Specifically, the 150 thousand rubles cap includes expenses related to treatment itself while excluding certain high-cost medical services that are unrestricted, as well as education, physical training, and some insurance-related contributions. It also excludes payments toward supplementary state pensions, voluntary retirement insurance, or life insurance from the deduction, ensuring the limit targets direct medical costs and related care expenditures.
Additionally, the deduction for children’s educational expenses has been raised. The limit has grown from 50 thousand rubles to 110 thousand rubles, providing more room for families to claim relief on school-related costs, tutoring, and other approved educational expenditures within the tax framework.
On the social security front, Russia also updated the insurance pension parameters effective January 1, 2024. The pension coefficient cost has increased from 129.5 rubles to 133.1 rubles, reflecting adjustments in the pension system and its calculation basis used for various benefits and contributions.
Lastly, Russia continues to recognize the existence of a uniform personal income tax approach for remote workers, a policy that had previously been established across the federation and continues to influence how remote employment income is treated for tax purposes.