Changes in Tax Legislation: what should companies expect

Legal Digest News
The State Duma of the Russian Federation has begun work on the development of a project in the field of changes in tax legislation, namely, the introduction of amendments to the progressive taxation of personal income.

Progressive taxation is a taxation system in which the effective tax rate increases with an increase in the tax base. In other words, with the growth of an individual’s income, the size of the tax rate increases.

If the bill is developed, adopted by the State Duma and signed by the President of the Russian Federation, then in the future the personal income tax rate will be:

  • 15% - in relation to the income of individuals in the amount of 1,000,000 rubles per year (about 83,000 rubles per month);
  • 20% - in relation to the income of individuals in the amount of more than 5,000,000 rubles per year (about 416,000 rubles per month).

When calculating the annual amount of income, all its categories will be taken into account — wages, investments, interest on deposits, dividends, income from the sale of securities, and so on. Personal income tax from state pensions and benefits will not be withheld. At the same time, only that part of income that is above its threshold amount will be taxed at an increased rate.

We remind you that currently there is a "flat" income tax scale at the rates:

  • 13% - if the amount of income is less than 5,000,000 rubles per year;
  • 15% - if the amount of income is more than 5,000,000 rubles per year.

The new changes are primarily related to the idea of increasing the amount of taxation for individuals receiving higher amounts of income.

Acsour company carefully monitors legislative changes and will advise you on any questions on this topic.