Russia’s finance ministry has put forth proposals for significant tax changes, including a progressive income tax structure for higher earners and increased corporate taxes, aimed at bolstering budget revenues.
The amendments, slated for implementation in 2025, target individuals earning over RUB 2.4 million annually and companies in the mineral extraction sector.
For individuals, the proposed changes would introduce progressive tax rates, with rates ranging from 15% to 22%, for different income brackets above 2.4 million rubles.
Finance Minister Anton Siluanov said that only 3.2% of the workforce, roughly two million people, would be affected by these changes.
On the corporate front, the ministry suggests raising the corporate tax rate to 25% from the current 20% – adding RUB 1.6 trillion (USD 18b) to the budget in 2025, and RUB 11.1 trillion ($125.3bn) by 2030 – with provisions for deductions on investments. This move is expected to address the growing share of profitable companies in the economy. Additionally, export duties tied to the rouble-dollar exchange rate would be abolished.
The proposed amendments aim to bolster budget revenues by an estimated RUB 2.6 trillion in 2025.
These measures come amidst Russia’s efforts to finance its defence sector and ongoing activities, including the conflict in Ukraine.
