Russia: Progressive individual income taxation introduced
Russia: Progressive individual income taxation
The tax law in Russia has been amended by federal law # 372-FZ (23 November 2020) to introduce a progressive taxation for individuals.
Effective 1 January 2021, annual income of a Russian tax resident up to RUB 5 million will continue to be taxed at a rate of 13%. If, however, the annual income exceeds RUB 5 million, the tax rate will now be 15%.
The 13% tax rate is also retained for certain types of income (such as income from the sale of property or for property received as a gift and income received as pension benefits or insurance payments).
A tax rate of 30% applies regarding most income received by nonresidents (unless the taxpayers qualify as “highly qualified experts”).
For more information, contact KPMG’s Global Head of International Tax:
Rodney Lawrence | +1 (312) 665 5137 | firstname.lastname@example.org
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