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Federation Council approves law on progressive personal income tax scale

Norms for owners of controlled foreign companies were also revised

MOSCOW, July 10. /TASS/. The Federation Council, the upper house of the Russian parliament, approved in the third and the final reading the law on further adjustments of the national fiscal system.

The law introduces in particular a progressive scale for the personal income tax. Amendments will be made in the Russian internal revenue code. The document was initiated by the Russian government.

According to the law, the personal income tax rate will remain 13% for citizens with revenues up to 2.4 mln rubles ($27,450). The tax will stand at 15% for revenues from 2.4 mln to 5 mln rubles ($57,200); 18% from 5 mln to 20 mln rubles ($228,770); 20% from 20 mln to 50 mln rubles ($572,000), and 22% when revenues are above 50 mln rubles. The higher tax will be collected not from the entire amount but from the surplus above relevant thresholds.

Norms for owners of controlled foreign companies were also revised. If a taxpayer is a controlling person of five and more controlled foreign companies, the taxable base will be 120,899,900 rubles ($1,33 mln).