Siluanov ruled out expanding the progressive personal income tax scale

There will be no expansion of the progressive personal income tax scale. This statement was made by Finance Minister Anton Siluanov at a press conference at the Moscow Financial Forum.

“No changes to basic taxes are envisaged,” he said, answering a question about a possible increase in the personal income tax rate to 20%.

Currently, the personal income tax rate in Russia is 13% for citizens whose income does not exceed 5 million rubles. Other citizens pay tax at a rate of 15%. The income of non-resident individuals is taxed at a rate of 30%.

At the end of April 2023, the Russian government submitted to the State Duma a bill to increase the personal income tax rate to 30% for Russians working abroad and having lost their tax residency. However, a few days later the bill was withdrawn.

At the end of July, Russian President Vladimir Putin signed a law according to which, from January 1, 2024, employees working remotely will be charged personal income tax at a base rate of 13%, even if they lose their tax residency in the Russian Federation. If their income exceeds 5 million rubles. per year, the rate will be 15%. The new rules also apply to freelancers. For them, the norm will come into force in 2025.