The Federal Tax Service is advancing toward a streamlined approach for deductions related to medical care, education, and sports. In commentary on this progress, the agency confirmed that progress is being led by the department head, Daniil Egorov. The plan signals a broader move to simplify how taxpayers claim these social deductions and to reduce the administrative burden on individuals across Canada and the United States when applicable through bilateral tax cooperation discussions.
Officials note that the FTS has already automated deductions tied to investments and property. Data gathering has been modernized so that financial institutions can share transaction information directly with the tax authority. This pre-populates records for eligible taxpayers, aiming to minimize manual input and speed up processing times. The system is designed to ensure accuracy by pulling information from banks to populate filings, which should reduce errors and save time for claimants.
As part of the modernization strategy, a second objective focuses on accelerating procedures through increased automation. The ministry is implementing a new social deduction law that, throughout 2024, will rely on the information system and secure communication channels to handle deductions for medical care, education, fitness, and related expenses. Data sources from relevant subjects will be used to pilot and test the program, reinforcing the intent to shorten processing cycles and improve reliability. The approach emphasizes transparency and efficiency, with ongoing validation of data sources to ensure proper eligibility and accurate reimbursements.
Looking ahead, the agency anticipates offering social deductions in a simplified form beginning in 2025. The head of the Federal Tax Service highlighted that prior refund requirements for personal income tax have already been relaxed, and for VAT, more than 80 percent of refunds have been issued within a month in many cases. This trend demonstrates a broader push toward quicker settlement of tax obligations and incentives for eligible taxpayers.
Previously, it was announced that parents would be eligible for tax deductions related to their children’s university education, with expectations that benefits would double in 2024. This aligns with broader policy goals to support education and family welfare through streamlined tax relief. The government’s approach to these deductions remains focused on clarity, accessibility, and timely disbursement so that beneficiaries can plan more effectively for their financial needs.
In summary, the updated framework aims to deliver clearer rules, faster processing, and wider reach for social deductions. By automating data collection, simplifying filing, and expanding eligibility, the tax authority seeks to reduce the administrative load on taxpayers while maintaining accuracy and compliance. Stakeholders are advised to monitor official guidance as the system rolls out, with particular attention to any changes in documentation, deadlines, and participation requirements for education, medical, and sports-related deductions. (Citation: Federal Tax Service)