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Putin signs law on progressive personal income scale

The higher tax will be collected not from the entire amount but from the surplus above relevant thresholds

MOSCOW, July 12. /TASS/. Russian President Vladimir Putin signed the law introducing the progressive scale for the personal income tax from January 1, 2025.

The document was posted on the legal information web portal. 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.

Changes will not apply to payments to participants in the special military operation and allowances for people working in regions of the Far North and other areas with adverse or special climatic and environmental conditions.

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).

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