Introduction of a progressive personal income tax scale
As of 1 January 2021, amendments to the Tax Code of the Russian Federation entered into force, pursuant to which a higher personal income tax rate of 15% applies to individuals’ income exceeding RUB 5 million per year.
At the same time, income not exceeding the threshold of RUB 5 million will continue to be taxed at the rate of 13%. A number of exceptions are provided for: the tax rate on income received from the sale or gift of real estate by Russian tax residents remains at 13% (30% for non-residents), regardless of the amount of such income. Income to which other rates apply (for example, amounts of interest savings taxed at 35% or non-resident income taxed at 30%) will remain taxed as before.
Following the review of a tax return or the recalculation of liabilities based on information from tax agents (where the threshold is exceeded), the tax inspectorate will issue notices for additional payment of personal income tax for the relevant tax period by 1 December (a notice-based additional payment procedure analogous to property taxes).
At the same time, income not exceeding the threshold of RUB 5 million will continue to be taxed at the rate of 13%. A number of exceptions are provided for: the tax rate on income received from the sale or gift of real estate by Russian tax residents remains at 13% (30% for non-residents), regardless of the amount of such income. Income to which other rates apply (for example, amounts of interest savings taxed at 35% or non-resident income taxed at 30%) will remain taxed as before.
Following the review of a tax return or the recalculation of liabilities based on information from tax agents (where the threshold is exceeded), the tax inspectorate will issue notices for additional payment of personal income tax for the relevant tax period by 1 December (a notice-based additional payment procedure analogous to property taxes).
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