Tax Deductions in Russia Can Now Be Processed Online

Digital Access to Tax Relief

Russia’s Gosuslugi portal has launched a new service called "Tax Deduction", giving citizens a simple, step-by-step process to claim the country’s most common tax deductions online — without visiting government offices or collecting paperwork. The platform automatically retrieves personal data from state systems and guides users through the process.

At launch, the service supports standard, social (for healthcare, education, or sports expenses), property (for real estate transactions), and investment deductions. It is part of the federal :"Government for People" project and expands the portal’s catalog of ‘life situations’ — integrated service packages tailored to real-world needs. There are currently 38 such life situations available, with 32 more planned by the end of 2025.

The initiative significantly streamlines government interactions, reduces administrative burdens, and improves efficiency for citizens and agencies alike. It’s another step in Russia’s broader digital transformation of public services, providing a more accessible, responsive interface between the government and the people.

New Functionality and Benefits

The new service is designed with scalability in mind. Future updates may add more deduction types and further integration with other government databases — such as those of medical and educational institutions. This "one-stop" approach reduces the need for intermediaries and simplifies the process of applying for deductions.

“The service allows citizens to go step by step through the entire process, while also providing clear information about the types of tax deductions available. Launched under the federal ‘Government for People’ initiative, the service also helps individuals determine which specific deduction they qualify for. For instance, if a person had expenses for healthcare, education, or sports during the year, they can apply for a social tax deduction.”

Dmitry Grigorenko

Deputy Prime Minister and Chief of Staff of the Russian Government

The platform will also generate valuable analytics, tracking usage rates and user feedback to identify bottlenecks and continuously improve the system. These data-driven insights will help optimize future government digital services.

However, developers face key challenges, including ensuring strong cybersecurity for automatic data retrieval, maintaining system stability, and providing an intuitive user interface. Poor design or technical failures could deter citizens and push them back toward traditional offline interactions. Strict adherence to legal and data protection standards is also critical to maintaining public trust in digital governance.

Part of a Global Trend

Russia’s digital governance strategy continues to evolve in line with global trends. In recent years, both federal and regional public service portals have expanded rapidly. Citizens can already file tax declarations online and use the "Personal Taxpayer Account" service for direct interactions with the Federal Tax Service (FNS). Electronic tax return and deduction tools are now being unified through Gosuslugi to create a more seamless user experience.

Digital solutions for tax refunds and deductions are already commonplace in many developed nations. With this update, Russia joins that global movement — advancing its own model of citizen-centered e-government. The "life situations" concept, which consolidates multiple services around key life events, represents an innovative step toward efficiency and accessibility in public administration.

Strengthening the Digital State

The launch of the Tax Deduction service is a milestone for Russia’s e-government ecosystem. It minimizes administrative barriers, reduces reliance on intermediaries, and improves the citizen experience — aligning with the ‘service state’ model being developed worldwide. Experts predict rapid adoption over the next one to two years, with measurable growth in digital engagement and citizen satisfaction.

By the end of 2025, additional "life situations" and deeper integration with federal systems (such as FNS, the Ministry of Finance, and the Ministry of Education) will further expand the platform’s capabilities. The demand for domestic IT solutions — including backend systems, APIs, cybersecurity, and UX design — will also increase, strengthening Russia’s digital industry and creating new opportunities for technology firms.

Ultimately, this project could become a model for other administrative services and a potential exportable framework for countries seeking to build their own digital government ecosystems.