QUESTION: Personal Income Tax (NDFL) and deductions: what are the review and refund timeframes?

The timeframes for reviewing tax returns and refunding money when applying for deductions are strictly regulated by the legislation of the Russian Federation. In order to properly manage your finances during this period, it is useful to calculate a baseline scenario and a stress scenario, set aside a financial cushion of 10 to 20 percent of the expected amount, and decide in advance which expenses or investment contributions you will cut first if the funds arrive later than planned.

A standard desk audit of the 3-NDFL tax return takes up to three months from the date of its submission to the tax authority. During this period, inspectors verify the correctness of document completion, cross-check data with employers' reports, and confirm the citizen's right to receive financial compensation.

After the desk audit is completed, the stage of transferring funds begins. According to the laws of the Russian Federation, up to one more month is allotted for transferring the approved amount to the bank account you specified. Thus, the total time from submitting the declaration to receiving the money on your card can be about four months.

If you apply for a deduction through your employer, the timeframes are shorter. The notification from the tax office arrives within thirty days, after which the company's accounting department starts paying you a salary without tax withholding starting from the next payroll period.

Taking these timeframes into account, never expect to receive the money day-to-day. Having an emergency financial cushion will allow you to calmly endure possible delays, bureaucratic hiccups, or the need to provide additional explanations upon request from the tax inspectorate.