The Ministry of Finance has presented a package of bills to change the tax system. They will affect citizens with incomes of 200 thousand rubles per month. In addition to individuals, the department proposes increasing the income tax for companies, from 20 to 25%.
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The Ministry of Finance’s proposals involve modifications to the Budget Law for 2024, as well as for the planning period of 2025 and 2026.
Changes for individuals
According to the initiative of the department, the rate of personal income tax (NDFL) will affect citizens with income from 2.4 million rubles per year to 5 million rubles per year (200 thousand – 416 666 rubles per month). For them, the rate increases from 13% to 15%.
For citizens with income from 5 million rubles to 20 million rubles per year (416,666 rubles – 1.67 million rubles per month) a rate of 18% will apply. For incomes from 20 million per year to 50 million per year, the tax will be calculated at a rate of 20%. And a 22% tax will be applied on income from 50 million rubles a year.
The agency emphasizes that only income exceeding the specified limits will be taxed at a progressive rate, and not the entire amount.
The changes will not affect the income of participants in military operations on the territory of Ukraine.
Corporate tax
The Ministry of Finance wants to increase the corporate income tax from 5% to 25%. The ministry justified this initiative by the increase in the proportion of profitable companies (75.3% in 2023 compared to 73.9% in 2022).
For small and medium-sized businesses with revenues of 60 million rubles or more, VAT is introduced. At the same time, the Ministry of Finance highlights that for 96.8% of entrepreneurs nothing will change under the simplified tax system (STS), since only 3.2% have more than 60 million in income.
In addition to the obligation to pay VAT, these entrepreneurs will be able to expand their business and enter into government contracts.
And for small and medium-sized businesses, the department proposes to increase the threshold of the simplified tax system for income to 450 million rubles and to 200 million rubles for fixed assets.
In addition, the Ministry of Finance’s proposals contain an initiative to increase the tax on mineral extraction in rental industries “with high profitability and low investments.” We are talking about the production of mineral fertilizers and the extraction of iron ore.
The department considers that despite the increase in the tax on mineral extraction, profitability in these areas will continue to be quite high, between 20 and 25%.
For the iron mining industry, it is proposed to increase the tax on mineral extraction by 15%, for the production of mineral fertilizers (potassium) by 2.3 times and for the production of mineral fertilizers (phosphorus) by 2 times. .
According to Finance Minister Anton Siluanov, the changes will provide “stable and predictable conditions for citizens, businesses and regions over the next six years.” The amendments could be adopted as early as the spring session of the State Duma.
Author:
Natalia Gormaleva
Source: RB
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