The State Duma approved in the third reading amendments to the Tax Code, introducing a progressive five-tier tax scale for individuals. The differentiated personal income tax will come into force in 2025.
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The State Duma adopted a law on a progressive scale of personal income tax
As follows from the document, the increase in personal income tax will not affect all citizens: incomes will be calculated at a higher rate, starting from 2.4 million per year (from 200 thousand rubles per month). In this case, the rate will be 15% instead of 13%. For incomes from 5 million rubles to 20 million rubles per year, the rate will be 18%. If a citizen’s income is from 20 to 50 million per year, the tax is now calculated at a rate of 20%. Citizens with an annual income of more than 50 million will pay a tax rate of 22%.
Amendments were also approved to increase corporate income tax from 20% to 25%. The VAT rate will remain in its current form.
The day before, on July 9, the parliamentarians approved the bill in its second reading.
Who will not be affected by the new rules for calculating the tax rate?
Exceptions will be made for citizens who participate in hostilities on the territory of Ukraine. In addition, the amendments will not affect bonuses and additional payments to people working in the regions of the Far North and other places with unfavorable climatic and environmental conditions.
Earlier, RB.RU found out how the new rules will affect ordinary Russian citizens, as well as what will change for businesses.
Author:
Natalia Gormaleva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
