Russia plans to tax passive income at 13-22% income tax rates

© изображение сгенерировал ИИ

The Russian Ministry of Finance has proposed amending the Tax Code to include passive income in the main tax base for personal income tax (PIT) at rates ranging from 13% to 22%.

This would affect income from dividends, interest on deposits, transactions with securities and digital rights, sale of property, insurance contracts, and gifts. Currently, such income is taxed at rates of 13-15%.

Under the proposed changes, the tax rate would depend on the amount of income, aligning more closely with the goals of introducing a progressive PIT scale.

Tax benefits will remain for participants in the Special Military Operation (SVO) (a military operation in Ukraine) and for small deposits: bank deposits up to 1 million rubles will remain tax-free.

The new measures are expected to affect no more than 6% of the population (approximately 4 million people) who have taxable income.