Tax for the rich in Russia in 2023

Who pays the increased tax, why it was introduced, how to calculate the payment and whether there are analogues in other countries – in the material “Kommersant”.

Personal Income Tax (NFDL) This is a mandatory, individually gratuitous payment. Citizens of Russia pay it from almost all types of their income. Previously, it was the same for all residents of the country, its size was 13%. From January 1, 2021, a progressive personal income tax scale, called the tax for the rich, began to operate in Russia. Now personal income tax for some persons has become equal to 15%.

What is a tax on the rich

According to the new legislation, the changes apply to citizens whose annual earnings are 5 million rubles. and more. Now such people pay not 13%, but 15% as part of personal income tax. The new tax amounted to 650 thousand rubles. per year, plus 15% of the part that exceeds 5 million rubles. The law does not apply to transactions with a one-time income, such as the sale of property or insurance payments. The exception is the sale of securities.

Who pays personal income tax in Russia

Tax residents of the Russian Federation are persons who actually stay in Russia for at least 183 calendar days within 12 months. In addition, personal income tax is paid by those who are not a tax resident of the Russian Federation if they receive income in Russia. Such a rule is enshrined Art. 207 Tax Code of the Russian Federation.

What types of income are subject to income tax?

– from wages;

– from remuneration under civil law contracts;

– from the sale of property;

— from teaching and consulting;

– from the sale or lease of a vehicle;

– from the sale or lease of real estate;

– from equity participation in the activities of organizations received in the form of dividends;

– from various winnings (in the lottery and others).

Why was the rich taxed?

Konstantin Dobromyslov, Associate Professor, Department of Labor and Social Policy, RANEPA:

“A progressive scale of taxation of personal income was introduced in Russia in order to equalize social justice in society between citizens who receive high and low incomes. The principle of social justice in terms of citizens’ incomes is widely used in many developed countries – whoever receives more, pays more. The progressive scale of taxation of personal income in some countries in the maximum value can reach up to 75%. The current system of tax control in the Russian Federation based on digital technologies makes it possible to fairly accurately account for the income of individuals. This made it possible to bring salaries and other incomes out of the shadows and simplify tax administration.”

What will these funds be used for?

It was planned that thanks to this initiative, an additional 60 billion rubles will go to the budget in 2021. In 2022, this amount should amount to 64 billion rubles, and in 2023 – 68.5 billion. The government was going to use this money to treat children with rare, chronic and serious diseases. In addition, it was planned to purchase expensive medicines, equipment and rehabilitation means with these finances.

Tax on the rich in other countries

A progressive scale of personal income taxes is in effect in many countries. One of the most complex systems in Germany. It takes into account not only personal income, but also marital status, number of jobs and children. Depending on these factors, a citizen ends up in one of six tax groups. People with the lowest earnings, up to €9 thousand per year, are exempt from paying tax. For those whose income exceeds €260,000, personal income tax is 45%.

Finland uses a six-point scale. Here, not only wages are taxed, but also pensions, social benefits and scholarships, and two more taxes are included in personal income tax: church and health insurance. The non-taxable minimum is a salary of up to €16,000. With an income of up to €24,000, the rate will be 6%, from €24,000 to €39,600 – 17%. Citizens who receive annually from €39.6 thousand to €71.3 thousand pay personal income tax in the amount of 21.4%, and those who earn from €71.3 thousand to €100 thousand pay 29.7 %. The maximum tax is 31.7% on earnings of more than €100,000. In addition, residents of Finland pay a separate personal income tax established by the municipality. It can range from 17% to 22.5%.

In the US, personal income tax varies from 10% to 39%. Here, annual income up to $9,075 thousand is considered non-taxable. The maximum rate applies to citizens who receive more than $406,751 thousand per year. In addition, each state can introduce its own tax. Its size can be from 0% to 13%. It can also change within these limits every year.

China switched to a progressive tax system in 2011. It uses a seven-step system. Tax rates are 3%, 10%, 20%, 25%, 30%, 35% and 45%. Income from individual entrepreneurial activities in the field of trade and industry, as well as contracting activities, is subject to a five-stage personal income tax. Its size ranges from 5% to 35%. All other types of income in China are subject to personal income tax at a proportional rate of 20%.

In Brazil, income up to $5.3 thousand is not taxed. Citizens who receive from $5.3 thousand to $10.5 thousand per year pay personal income tax at a rate of 15%. Income over $10.5 thousand is taxed at 27.5%.

The progressive tax scale is also used in France, Great Britain, Italy, Austria, Sweden, Canada and other countries.

Vasily Kuznetsov, Direct Speech group