Content:
How it all works now What is proposed to change from 2025: a five-tier personal income tax scaleFeatures of the proposed progressive personal income tax scaleTax benefits: who is entitled to what and whichIncome Non-Earned: Personal Income Tax Rate on Deposits, Shares and Real Estate AssetsWill the tax rate for the self-employed change? Where will the money go?
How everything works now
Since 2001, Russia has had a flat personal income tax scale (NDFL); Since 2021, an element of progression has appeared in it; Under the current regime, the vast majority of income is subject to a flat rate of 13%. For those Russian citizens whose income exceeds 5 million rubles. per year, the rate is 15%.
Important! The increased rate applies specifically to the amount that exceeds the threshold of 5 million rubles, and not to all income at once.
What do you propose to change?
The Ministry of Finance proposes to introduce a complete progressive scale of personal income tax, which consists of five steps:
The rate is 13%. The current rate of personal income tax remains the same for income up to 2.4 million rubles. per year, that is, up to 200 thousand rubles. per month. Rate 15%. Covers income from 2.4 to 5 million rubles. in the year. That is, earnings of 200 thousand rubles. up to 416.7 thousand rubles per month Rate 18%. It is proposed to set it for income from 5 to 20 million rubles. in the year. This is a range of 416.7 thousand rubles. up to 1.67 million rubles. per month. Rate 20%. The Ministry of Finance proposed this level of personal income tax rate for incomes of 20 to 50 million rubles. in the year. Translated per month: from 1.67 million rubles. up to 4.17 million rubles Rate of 22%. The maximum level of the personal income tax rate expects income of 50 million rubles. per year or 4.17 million rubles. per month and more.
Characteristics of the proposed progressive personal income tax scale
As with the current system, with annual income of more than 5 million rubles, the total amount of income will not be taxed at a higher rate, but only the excess of the specified thresholds. For example, a person who earns 250 thousand rubles. per month you will pay only 1 thousand rubles. Additional personal income tax – at a rate of 13%, its excess is 50 thousand rubles. it would be taxed at 6,500 rubles, and at a rate of 15% it would be taxed at 7,500 rubles.
It should be noted that the introduction of a progressive scale of personal income tax among 64 million people in the working population will affect only 2 million people (with an income of more than 2.4 million rubles per year) . This is 3.2% of the country’s active population. The lower threshold of the proposed progressive personal income tax scale exceeds the average Russian nominal salary almost three times: according to Rosstat, for 2023 it was 74,854 rubles. per month.
Who is entitled to tax benefits?
They will not enter the progressive scale:
For SVO participants, the current fixed tax scale is maintained with a tax rate of 13%. But we are talking here specifically about income in the form of monetary allowance and other additional monetary payments in connection with participation in the SVO. Families with two or more children, whose average per capita income per family member does not exceed one and a half times. the monthly subsistence level, they will receive a refund of the personal income tax paid in the amount of 7% of 13% (that is, the personal income tax rate for them will actually be 6%). This support can be compared to the “cashback” (payment of the “thirteenth salary”) at the end of the year. According to the current calculations of the Ministry of Finance, parents with a monthly income of 53 thousand rubles can apply for a refund if both work, or 106 thousand rubles if only one of them works. The money for this support will come from the federal budget, so the burden on regional budgets will not increase. Additionally, citizens will be able to take advantage of the personal income tax deduction by passing the GTO standards and undergoing an annual medical examination. It is assumed that the employer will apply such deductions when paying salaries and calculating personal income tax by analogy with other standard tax deductions.
Unearned income: personal income tax rate on deposits, stocks and real estate
A system of five tax levels is not foreseen in this part. But the level of income will continue to be the determining factor when choosing the personal income tax rate.
Bank deposits
Personal income tax on interest on deposits will be 13% up to 2.4 million rubles. and above this amount, 15% without further progression. Exactly the same tax regime will apply to personal income tax on interest income from the sale of securities and shares. Maintaining the level of interest rates aims to stimulate citizens to create savings. This has a social aspect so that the increase in the tax burden does not affect the majority of citizens who keep their savings in banks.
Shares and interests in businesses.
The benefit for more than five years of ownership of securities and shares, according to which personal income tax is not paid, will cease to apply if the taxpayer’s income during the year exceeds 50 million rubles. according to the corresponding tax base. The abolition of this benefit is the embodiment of the principle of fair taxation, when tax conditions for small retail investors do not change, but for people with high incomes the preference will be abolished.
Real estate
The current rate of personal income tax for sold real estate remains at 13% up to an amount of 2.4 million rubles and, above this amount, at 15%, also without further progression . The benefit in the form of exemption from the sale of property of an individual upon completion of the minimum period of ownership of such property established by the Tax Code (this is five years for real estate, as well as three years for other property), remains in in its entirety, regardless of the amount of the taxpayer’s income.
Will the tax rate for the self-employed change?
The “self-employment” regime is fully preserved and rates remain at the same level. Self-employed workers continue to pay taxes at preferential rates: 4% on income received from individuals and 6% on income received from individual entrepreneurs and organizations.
Thus, the State’s promise not to touch tax rates for the self-employed for ten years remains in force (the regime has been in force since 2019). According to the Federal Tax Service, there are almost 10 million registered self-employed workers in Russia.
Where will the money go?
It is planned that the money from changes in the tax system (including changes for companies, and not just the personal income tax scale) will be used for the socio-economic development of the country:
financing of new national projects announced by the president: “Family”, “Youth and children”, “Long and active life”, “Increased investments in infrastructure, construction of housing, roads, financing measures to support businesses, development of knowledge”. -intensive industries and high-tech sector (including domestic IT solutions and equipment, pharmaceuticals, chemical industry, production of new materials, development of technological sovereignty projects (production of aircraft, ships, machine tools, microelectronics, medicines, economy of data and). etc.). support for women’s health, support for regions with low birth rates), for various projects to combat mortality from diseases of the cardiovascular system, oncology, support for patients with diabetes, purchase of rehabilitation equipment, cultural facilities and sports, etc.
