Russia officially published Federal Law No. 176-FZ on 12 July 2024, introducing a set of tax reforms effective from 2025. Key changes include a corporate tax rate hike to 25% and new progressive individual income tax rates reaching up to 22%.
The law also modifies tax benefits for IT companies, shifting the 0% tax rate for 2022-2024 to a 5% rate for 2025-2030. Deductions for R&D expenses will increase from 150% to 200%, and similar deductions will be applied to expenses related to Russian software acquisition and adaptation.
Changes to the Simplified Taxation System (STS) include higher thresholds for income, fixed assets, and employee count, as well as new non-deductible VAT rates of 5% and 7%, depending on income. The increased income tax rates for larger companies under the STS will be removed, maintaining the standard rates of 6% on income and 15% on income minus expenses.
The law also introduces a new tourist tax on accommodation services, with rates starting at 1% in 2025 and increasing annually to 5% by 2029. A minimum tax of RUB 100 per day will be mandatory.
According to previous coverage, the reform entails a notable increase in the corporate income tax rate, soaring from 20% to 25%. For personal income, a new tiered structure will be implemented:
- Incomes up to RUB 2.4 million will face a 13% tax rate.
- Incomes exceeding RUB 2.4 million up to RUB 5 million will be taxed at 15%.
- Those between RUB 5 million and RUB 20 million will incur an 18% tax.
- Higher incomes ranging from RUB 20 million to RUB 50 million will face a 20% tax rate.
- Incomes surpassing RUB 50 million will be taxed at 22%.
