The CMD explained the specifics of receiving a tax deduction for the purchase of medicines

Purpose:
The purpose of this update is to inform taxpayers about the specifics of obtaining a social tax deduction for expenses related to purchasing medications. The update aims to clarify the rules and limitations surrounding this tax benefit, enabling taxpayers to make informed decisions regarding their tax obligations.

Effects on Industry:

The update’s primary impact will be on individual taxpayers who incur medical expenses, particularly those purchasing prescribed medications. By allowing a tax deduction for these expenditures, the update aims to provide financial relief to those in need. This, in turn, may lead to increased access to healthcare services and improved overall health outcomes.

Furthermore, the update’s provisions regarding the maximum allowable tax deduction (RUB 120,000 per calendar year) may influence taxpayers’ decisions when it comes to seeking medical care and managing their healthcare expenses. Healthcare providers and insurance companies might also be affected indirectly, as they will need to consider the implications of this tax benefit on patient behavior and demand for services.

Relevant Stakeholders:

The following stakeholders are directly or indirectly impacted by this update:

• Individual taxpayers, particularly those with chronic medical conditions or significant healthcare expenses
• Healthcare providers and pharmaceutical companies, which may experience changes in demand for their services and products
• Insurance companies, which will need to consider the implications of this tax benefit on patient behavior and demand for health insurance coverage
• Tax authorities and government agencies responsible for administering the tax code and enforcing compliance with its provisions

Next Steps:

To comply with or respond to this update, taxpayers should:

1. Review their medical expenses and determine whether they qualify for a social tax deduction
2. Obtain a prescription from a licensed healthcare provider to document their medical needs
3. Keep records of their medication purchases and associated costs to support their tax claim
4. Consult with a tax professional or accountant if necessary, to ensure compliance with the relevant tax laws and regulations

Any Other Relevant Information:

In addition to the above information, it is worth noting that:

• The social tax deduction for medical expenses is subject to change based on amendments to the tax code or regulatory updates
• Taxpayers should stay informed about any changes to the tax law or relevant regulations affecting their eligibility for this benefit
• This update may have broader implications for healthcare policy and access, particularly if it influences patient behavior and demand for health services