Tax policy and practice: what to pay attention to when applying for a social tax deduction in 2025

Purpose
The Russian Tax Service has released an update regarding changes to social tax deductions (3-НДФЛ) that can be claimed by taxpayers. This update affects taxpayers who want to claim social tax deductions for the years 2022, 2023, and 2024.

Effects on Industry
The update introduces a new maximum value for social tax deductions of up to 150 thousand rubles (previously 110 thousand rubles for expenses related to child education) for income earned in 2024. This means that taxpayers can only claim a maximum deduction of up to 120 thousand rubles for expenses incurred in 2023 and declared in 2025. Furthermore, the update also allows taxpayers to claim social tax deductions for expenses related to their spouse’s (wife’s or husband’s) higher education, which was not previously allowed.

Relevant Stakeholders
This update affects all Russian taxpayers who have claimed or plan to claim social tax deductions for the years 2022, 2023, and 2024. This includes individuals with income from various sources such as employment, entrepreneurship, or investments. The update also applies to freelancers, small business owners, and other self-employed individuals who have expenses related to child education or their spouse’s education.

Next Steps
To comply with this update, taxpayers should review their previous tax returns (for 2022, 2023, and 2024) and adjust their claimed social tax deductions accordingly. Taxpayers may need to refile their tax returns or claim additional deductions for expenses that were not previously allowed.

Any Other Relevant Information
The Russian Tax Service will be updating its guidelines and forms to reflect the new maximum values for social tax deductions. Taxpayers are advised to check with the Tax Service’s website or consult with a tax professional for the latest information on how to claim these deductions.