"In the amount of actual expenses incurred": in Russia it was proposed to introduce a tax deduction for personal income tax for playing sports

In Russia, a deduction for personal income tax can be introduced for citizens involved in physical education and sports.

This was reported on the website of the Cabinet.

The corresponding initiative was considered by the government commission on legislative activity.

Changes to the Tax Code were prepared by the Ministry of Finance on behalf of President Vladimir Putin.

If accepted, they should add to the line of social tax deductions.

“The deduction allows you to reduce the tax payment or return the personal income tax already paid during the year.

In fact, it is a form of state participation in the co-financing of socially significant expenses of citizens, ”the Cabinet of Ministers said.

They explained that the "health-improving" tax deduction is planned to be provided in the amount of actual expenses incurred, but not more than 120 thousand rubles for the tax period, taking into account other social deductions for personal income tax.

“The maximum amount of deduction can be 15.6 thousand rubles (13% of the maximum amount of 120 thousand rubles).

The list of organizations providing services, upon receipt of which it will be possible to qualify for a deduction, will be formed by the Ministry of Sports, ”the government said.

It is expected that after revision, the bill will be submitted to the State Duma.

The first deputy chairman of the State Duma committee on physical culture, sports, tourism and youth affairs Vyacheslav Fetisov, in a conversation with RT, noted the need to support this initiative if it becomes an incentive for citizens to lead an active lifestyle.

At the same time, the deputy noted that at present there are many ways to regulate the relevant legislative decisions.

“Now there are already many control tools, and we should not hesitate to give preferences to businesses and people who invest in infrastructure - in inventory, equipment, those who help general education and sports schools.

We should not be afraid to introduce these generally accepted norms in the law, "the parliamentarian said in an interview with RT.

• AGN "Moscow"

Let us recall that the possibility of providing citizens with tax deductions from the amounts spent on sports and recreation services was instructed by Russian President Vladimir Putin.

The head of state gave such an order to the government following the meeting of the Presidential Council for the Development of Physical Culture and Sports, held on July 20, 2018. 

Prior to that, in February 2018, the idea to introduce tax deductions to encourage Russians to go in for sports was expressed at the Center for Strategic Research and the Higher School of Economics.

In the report "Healthcare: Necessary Responses to the Challenges of the Time", it was proposed to subsidize the working population for paid sports by "establishing tax deductions for personal income tax when spending on physical education."

They noted that the mechanism for granting such deductions should be similar to the mechanism for receiving deductions for expenditures on education and medical services.

In January 2019, the ONF reported that the social deduction will apply to the amounts that citizens paid for sports, and will be carried out in the same way as the deductions for educational and medical services.

At the same time, the maximum amount of payment will be limited, the ONF press service explained then to RT.

“Therefore, it will not be possible to“ enrich ”at the expense of going to elite gyms or engaging in expensive sports, such as golf, yachting or auto racing,” explained Tatyana Loginova, an ONF expert, a researcher at the Center for Tax Policy of the Financial Research Institute under the Ministry of Finance.

She added that the amount of the deduction will depend on the cost of the subscription.

For visitors of the low-cost segment, it will be approximately less than 2 thousand rubles, and for citizens who prefer more expensive fitness clubs - about 10 thousand rubles.

Earlier in Russia it was proposed to introduce a social tax deduction in the amount of the subsistence level of the working-age population in each specific region.

This was reported by "Rossiyskaya Gazeta" with reference to the version of the general agreement between the all-Russian associations of trade unions, employers and the government for 2021-2023, which was submitted to the Russian Trilateral Commission.

The document, in particular, stated that the parties undertake "to ensure the introduction of a social tax deduction for personal income tax for low-income workers (taking into account family burden) in the amount of the subsistence level of the working-age population in the corresponding constituent entity of the Russian Federation for each month of the tax period."