Russian authorities are discussing an increase in personal income tax for individuals with incomes of 1 million and 5 million rubles, as well as an increase in income tax for companies from 20% to 25%. This was reported by Bloomberg, the data was confirmed by Forbes sources.
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The Russian Cabinet of Ministers is studying the idea of increasing personal income tax to 15% for citizens with incomes exceeding $1 million a year. It is proposed to charge 20% instead of 15% to people with an income of 5 million a year.
At the same time, the possibility of increasing the corporate income tax from 20% to 25% is being considered.
The increase to 15% will affect Russians whose monthly income exceeds 83 thousand rubles. 20% must be paid to citizens with 417 thousand monthly income if the discussed measures come into force.
However, if the amendments are approved, the tax at an increased rate will only apply to amounts exceeding the threshold of 1 million and 5 million rubles. Additionally, only regular income such as salaries, interest on deposits and dividends will be taken into account.
According to a federal official, “work is now underway on progressive taxation of the income of individuals and organizations.”
Earlier this summer, amid a budget deficit, Vladimir Putin signed a law requiring companies to pay a tax on excess profits. In December, the Ministry of Finance reported that the budget received an additional 315 billion rubles from companies, 5% more than the department’s expectations.
Author:
Natalia Gormaleva
Source: RB
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