TAX DEDUCTIONS IN THE NEW SUBJECTS OF THE RUSSIAN FEDERATION: OPPORTUNITIES AND PROSPECTS

Abstract

Problem. The article examines the role of tax deductions as a key financial and legal instrument for improving the living standards of the population, with a focus on the adaptation challenges faced by residents of the new subjects of the Russian Federation, using the Donetsk People's Republic as an example. The objective is to identify the problems encountered by citizens of the new regions due to insufficient awareness of their rights to tax deductions. Methodology. The research correlates the topic with the national development goals of the Russian Federation for 2030 and 2036, approved by the Decree of the President of the Russian Federation "On the National Development Goals of the Russian Federation for the period up to 2030 and for the perspective up to 2036." The central thesis of the work is that an effective tax deduction system is a multi-factorial stimulus for wealth growth. The mechanism of influence of various types of deductions (standard, social, property, professional, investment) on the quality of life is analyzed through the prism of: increasing disposable incomes of the population, encouraging socially significant expenses (education, healthcare), supporting families with children, and improving housing conditions. Research Results. Using the example of the Donetsk People's Republic, positive changes in legislation are shown (increase in child deduction amounts and income thresholds). The work structures the main types of deductions, their amounts, conditions for provision (through the employer, tax authority, or in a simplified manner through the "Taxpayer's Personal Account"). Special attention is paid to property deductions as the most in-demand instrument. Practical Application. Tax deductions act not only as a tool for direct financial support of citizens at the micro-level but also contribute to the development of human capital, growth in consumer demand, and, consequently, macroeconomic stability. Further improvement and popularization of this system, especially in the new regions, define it as a crucial direction of the state's socio-economic policy, directly influencing the achievement of national development goals.