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 |

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us