I am conducting a research on the tax deductions that Spanish regions offer when the taxpayer incurs in certain common items of expenditure (education, health care, transport, medicines, etc.). It would be quite useful to compare them with other international experiences.
Thanks for your time!!
India has a long list of exemptions. Interest on education loan, tuition fee for children , interest on housing loans, actual house rent paid or allowance received from the employer, entertainment allowance, life insurance with an additional slab for medical insurance, and medical treatment, are widely used to claim exemptions. All these exemptions come with a maximum concession limit available for an individual assessee.
The following link shall explain all the tax exemptions in a simplified format.
https://cleartax.in/Guide/Section80Deductions
In the US there are deductions related to education within the provisions of the gift tax; for example tuitions paid directly to educational institutions and grandparents deposits in educational funds are exempted from the gift tax.
Colombian personal tax law considers the deduction of some expenses like education or health care but there are restrictions. The deduction is for employees and If tax payer chooses to deduct mortgage interest, then it is not allowed to deduct the education and health care payments in the same tax return. It is also important to consider that these payments must be related to the tax payer, his or her partner and up to two children. Finally, the maximun amount the tax payer can deduct is the equivalent to 15% of the labour income.
In Italy you can deduct from your personal income tax 19 per cent of the healthcare (and prescriptions) expenditures you had to pay during the year. This does not apply to the first 129,11 euros. You can also detract 19 per cent of the expenditures for middle and high school and university.
Dear Jose,
in Germany several education / healthcare deductions are available for personal income tax calculation purposes.
Education: Expenses related to the first study can only be deducted as a so-called Special Expenses Deduction subject to an annual limitation of 6,000 EUR. However, after several rulings of the German Federal Fiscal Court it is probable that legislation will be changed to allow first study expenses to be treated as other Income-Related Expenses:
If the course you are paying for relates to your job you can deduct your expenses as Income-Related Expenses without limitation. Such income-related expenses can be even brought forward if they relate to a future employment or other income generating activity.
Also, parents of private school children are alowed to deduct 30% of the school fees, or 5,000 EUR at a maximum per year as a Special Expenses Deduction.
Health: Taxpayers can deduct health-related expenses as a so-called Exceptional Costs. The exact deductible amount depends on the income situation of the taxpayer. The more income the taxpayer generates, the more health care costs the taxpayer can bear, thus reducing the deductible amount.
Besides this, costs of health and nursing insurance can be deducted completely as long as they relate to a basic medical coverage. The amount of the basic medical coverage depends on the wages earned by an employee and on the profits earned by a self-employed, respectively. Moreover, additional health insurance costs can be deducted subject to a 2,800 EUR limitation per year. Rerading health insurance, there are numerous exceptions to the general rule described above.
I hope this helps!
Paul
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