Russia To Raise Income Tax Rate To 15% On Annual Earnings Over Rubles 5 Million
The Russian Government has submitted Bill No. 1022669-7 to the lower house of Parliament (State Duma), to increase the individual income tax rate on income earned over a specific threshold. The draft bill was submitted as part of the budget and was submitted on September 17.
The bill includes measures that would increase the individual income tax rate to 15 percent from 13 percent for amounts earned over 5 million Russian rubles (US$66,169) per year, effective Jan. 1, 2021.
Russian Finance Minister Anton Siluanov said “The draft laws are ready. We expect that they will be adopted during this autumn session. How many citizens will be subject to increased taxation? According to our estimates, their number will be no more than 1% of all working citizens.”
Siluanov stressed that for other categories of citizens, the terms for levying personal income tax will not change and that “not all income will be taxed at an increased rate, but only the part that exceeds 5 million rubles per year.”
|New Russia Individual Income Tax Band|
|to 5 million rubles||13%|
|5 million rubles and above||15%|
|Example: Annual income of 10 million rubles, taxable portion will be 5 million rubles at 13% = 650,000 plus 5 million at 15% = 750,000, total tax bill: 1.4 million rubles.|
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