On July 10, the State Duma adopted amendments to the Tax Code in the third and final reading. Among other things, they introduce a progressive scale of income tax for individuals.
For income within 2.4 million rubles the annual rate remains at 13%. From the moment when the annual income exceeds the threshold of 2.4, 5, 20 and 50 million rubles, the excess amount shall be taxed at the rate of 15%, 18%, 20% and 22%, respectively.
The new rates will affect approximately 3% of the labor force. The amendments will not affect the incomes of participants in the military operation, nor will they affect bonuses and additional payments of those working in the Far North and other regions with adverse climate conditions.
The Russian Ministry of Finance estimates the amount of additional budget revenues in 2025 from the changes made to the Tax Code at 2.6 trillion rubles. The main contribution will come from the changes relating to corporate profit tax and personal income tax, at 1.6 trillion rubles and 533 billion rubles, respectively.
According to the head of the Central Bank, Elvira Nabiullina, the additional taxes collected will not affect the inflation rate, because they are to be “expensed”: “This is to say the funds that are withdrawn from the economy through increased taxes are fed back into the economy.”