06.11.08

According to the press service of the Ministry of Education and Science, tax legislation concerning training and education expenses incurred by organizations will be revised on January 1, 2009. The new rules include as tax deductions the costs of primary and secondary professional education programs, costs for training and retraining workers, and providing higher and secondary special education.

This will apply to those employees who have concluded an employment contract and those who will be employed within three months after training and will work for the taxpayer for at least one year.

In addition, the Federal Law from July 22, 2008 N 158-FL amended Chapter 24 of the Tax Code to stipulate that such tuition fees will reduce the tax base for figuring Unified Social Tax.

Private individuals will also be able to write of educational expenses they paid at Russia's licensed educational institutions or foreign licensed educational institutions from their income taxes. Currently, only orphans are eligible for this deduction.

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