The State Duma adopted in the first reading two draft laws that simplify the receipt of property and investment tax deductions, as well as introduce a new tax deduction for sports and recreation services.
Alfiya Kogogina, Deputy Chairman of the State Duma Committee on Economic Policy, Industry, Innovative Development and Entrepreneurship, member of the UNITED RUSSIA faction, commented: "Citizens who have a taxpayer's personal account will no longer fill out a tax return and submit supporting documents to the tax authority. The initiative we have adopted significantly simplifies and accelerates the receipt of property and investment tax deductions. One of the most popular is the opportunity to return or not pay part of taxes when buying a home. Today, it is simply necessary to be able to register such services online, without paperwork and queues.
The new social tax deduction for physical education and wellness services is especially relevant in a pandemic, when it is important to improve health and preserve people's health."
The draft law simplifies the procedure for taxpayers to receive property deductions for housing costs and repayment of interest on targeted loans, investment deductions for transactions recorded on an individual investment account, and automates the processes of tax administration in this part.
The simplified procedure for obtaining these tax deductions involves contactless interaction of individual taxpayers with tax authorities through the use of the Taxpayer's Personal Account for Individuals Internet service and automated verification by the tax authority of the taxpayer's right to receive a tax deduction by using the capabilities of the automated information system of the Federal Tax Service of Russia. This procedure eliminates the need to fill out a personal income tax return and submit supporting documents to the tax authority in order to receive such deductions.
It is proposed to replace the obligation of individual taxpayers to document their right to tax deductions with an automated system for processing information received by the tax authorities on expenses for the purchase of real estate and repayment of mortgage interest, as well as on the amount of funds deposited into an individual investment account, as part of information interaction between tax authorities and external data sources – banks (securities market participants) that meet the established requirements for participation in the rules for the exchange of information with tax authorities.