MOSCOW, January 1. /TASS/. The law on increasing the personal income tax rate from 13% to 15% for income surpassing 5 mln rubles ($67,075) per year comes into force in Russia.
President Vladimir Putin came up with the initiative in June, and on November 23 signed the law. He emphasized that not all income will be taxed at an increased rate, but only the part that exceeds 5 mln rubles per year. The initiative is aimed at creating an additional source of funding for treating children with severe and chronic diseases, including rare ones.
It is expected that an increase in the tax rate will lead to additional revenue in the amount of 60 bln rubles ($804.9 mln) in 2021, 64 bln rubles ($858.52 mln) in 2022, and 68.5 bln rubles ($918.9 mln) in 2023. These allocations have already been reserved in the time of forming the draft federal budget for 2021 and the planning period of 2022 and 2023 under the state program "Healthcare Development".
The new law stipulates that the personal income tax rate remains at 13% for incomes of individuals (Russian tax residents) raised from sale of property and their shares in it, incomes in the form of the cost of property obtained by way of gift, as well as for taxable incomes individuals receive in the form of insurance payments under insurance agreements and in the form of pensions payments. The exception is made for securities. The bill emphasizes that a fixed income over 5 mln rubles a year, raised by a foreign company is subject to a 15% income tax. This also applies to dividends an individual receives from a foreign entity and declares in his or her tax return.
As for control over the raised personal income tax rate payment, the bill envisages that tax agents will be exempt from liability for tax violations for Q1 2021. They are also exempt from paying the corresponding amounts of penalties in case they voluntarily transfer specified tax amounts to the budget system of the Russian Federation until July 1, 2021.