- June 26, 2020
Russia Will Have a Progressive Scale of Taxation: The Personal Income Tax Rate for the “Rich” Will Increase From 13% to 15%
Vladimir Putin announced the increase of personal income tax rate from January 1, 2021 during his last address to the citizens of Russia. The change will affect those who earn over 5 million ₽ per year (i.e., over 416,000 ₽ per month). The increased rate will not apply to the entire salary, but only to the part of income that exceeds this amount.
The money received in the budget will have a special purpose: it will be used for treatment of children with serious illnesses, operations, purchase of medicines, equipment and rehabilitation resources.
There are no specifics (for example, how bonuses, dividends, sale of shares, deposits and other income will be taken into account); we are waiting for a draft document from the Government.