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HomeLatest NewsYamal parliament voted to improve the country's tax system - Rossiyskaya Gazeta

Yamal parliament voted to improve the country’s tax system – Rossiyskaya Gazeta

Date: July 12, 2024 Time: 15:51:57

The tax modifications include three main blocks of innovations: the expansion of the principle of progression in personal income tax; increase in income tax from 20 to 25%; tax deduction for citizens with low income and for companies with a high level of investment.

“The Yamal Parliament voted in favor of a fair and balanced tax system. Innovations in tax reform will provide financial revenue to solve national problems, promote the socio-economic development of Russian regions and fulfill the majority’s desire for social justice” , explained the President of the Russian Federation. the Legislative Assembly of the Yamal-Nenets Autonomous Okrug Sergei Yamkin.

One of the key changes is the introduction of a progressive tax system. Thus, for citizens with income from 2.4 to 5 million rubles per year, the tax rate will be 15%, from 5 to 20 million rubles – 18%, from 20 to 50 million rubles – 20%. For those who earn more than 50 million rubles: 22%. For income less than 2.4 million rubles per year, the personal income tax rate will remain the same – 13%.

Sergei Yamkin noted that the progressive scale will affect only 3% of the country’s working population, people with incomes exceeding 200 thousand rubles per month. Low-income citizens and families with two or more children will receive support: depending on their average per capita income at the end of the year, they will be able to apply for a 7% tax deduction. “It is essential that for SVO participants the previous tax procedure remains the same,” the parliamentarian emphasized.

Among the important changes are an increase in income tax from 20 to 25% and a change in the approach to taxation of small and medium-sized businesses. Thus, it is proposed to increase the thresholds of the simplified tax system (STS) for income up to 450 million rubles and fixed assets up to 200 million rubles, with the simultaneous introduction of the obligation to pay VAT for taxpayers with income exceeding 60 million rubles. Companies will have the option of paying VAT: a general regime with a rate of 20% (10% for a certain category of goods) and all deductions, or 5% VAT without the right to deductions for income up to 250 million of rubles and 7% for income up to 450 million rubles. This measure will not affect the majority of entrepreneurs working today under the simplified tax system, since, according to statistics, 98.6% of them have incomes of up to 60 million rubles.

“Currently, the tax burden for those who apply the simplified tax system is lower than for those who apply the general tax regime. This leads to the fragmentation of companies and unequal competition. For entrepreneurs who are willing to start working blankly, an amnesty will be approved. They will be provided, which will create the conditions for emerging from the shadows. For the self-employed, the rate will remain at the same level. It is important that the innovation sector receives additional support and, overall, this approach will contribute to the development of. small and medium-sized businesses,” said Viktor Kazarin, Chairman of the Committee on Economic Policy, Budget and Finance of the Legislative Assembly of the Yamalo-Nenets Autonomous District.

Together with other modifications, in 2025 the fiscal changes should provide the budgets of all levels with about 2.6 trillion rubles. These funds will be used for the needs of society, economic development and the implementation of new national projects.

The State Duma plans to approve amendments to the budget legislation in the spring session so that the tax reform will take effect from January 1, 2025. The draft of the changes is now undergoing public discussion, the most extensive of which took place at the recently concluded St. Petersburg International Economic Forum, in the panel session “Improving the tax system: equity, balance, stability.”

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Hansen Taylor
Hansen Taylor
Hansen Taylor is a full-time editor for ePrimefeed covering sports and movie news.
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