Putin signed a law on progressive personal income tax, increasing income tax and tourist tax

Vladimir Putin signed a law introducing a progressive personal income tax rate, a tourist tax and increasing some duties.

With an annual income of up to 2.4 million rubles per year, the personal income tax rate will be 13%, up to 5 million rubles – 15%, up to 20 million rubles – 18%, up to 50 million rubles – 20%, over 50 million rubles – 22%. The increased tax rate will be calculated on the excess amount.

Companies operating at the general tax rate will see their income tax increase from 20% to 25%.

For entrepreneurs operating under the simplified tax system (STS), the income threshold will be increased to 450 million rubles. If the income under the simplified tax system exceeds 60 million rubles per year, the company will have to pay VAT.

The law signed by the president also increases fees: for divorce – up to 5 thousand rubles, for changing names – up to 5 thousand rubles. The fee for registering real estate will increase – it will be 4 thousand rubles, compared to the previous 2 thousand rubles, if the cadastral value of the property has not been determined or is less than 22 million rubles.

The signed law also introduces a tourist tax in Russia. It will work in a similar way to a tourist tax; its size will be determined by the regions.

All changes will come into effect in 2025.