Russia raises income tax rate to 15% for annual incomes of over $66,000

by   CIJ News iDesk V
2020-11-23   11:02

The Russian Federation Council has approved a law on raising personal income tax rate from 13% to 15% for incomes that exceed 5 mln rubles ($66,123) a year. The law was drafted by the order of President Vladimir Putin to create an additional source of funding for the treatment of children with severe life-threatening and chronic diseases, including rare ones. The tax increase will lead to additional tax receipts in the amount of $793 mln in 2021, $846 mln in 2022, and $906 mln in 2023.

The bill stipulates that a fixed income of over 5 mln rubles a year, raised by a foreign company, is subject to a 15% income tax. This also applies to dividends an individual receives from a foreign entity and declares in his or her tax return. Meanwhile the personal income tax rate remains at 13% for incomes of individuals which are raised from sale of property and their shares in it, incomes in the form of the cost of property obtained by way of gift, as well as for taxable incomes individuals receive in the form of insurance payments under insurance agreements and in the form of pensions payments.