The Ministry of Finance’s bill on increasing personal income tax rates was published in the State Duma database. He proposes to expand the use of the progressive scale, which has been in effect since 2021. At the same time, new revenues will go to the federal budget, Faridaily noted.
Now, if a person’s annual income exceeds five million rubles, then the portion of the amount above this figure is taxed at 15%, instead of 13%. Additional proceeds go to the state fund “Circle of Good” for the treatment of children with spinal muscular atrophy. The main revenues from personal income tax continue to go to the budgets of constituent entities and municipalities.
The Ministry of Finance proposes to allocate five salary thresholds for the application of the new personal income tax from 15% to 22%. The increased rate will apply to those who receive more than 200 thousand rubles per month. The increased rates will not apply to all income, but to the amount it exceeds specified thresholds. The ministry also previously promised to make an exception and not raise taxes for participants in the war in Ukraine.
It is also proposed to increase the corporate income tax and change the simplified taxation system.
“The bill provides for the direction of all additional income that arose in connection with the introduction of a progressive tax rate (over 13 percent) into the federal budget,” the explanatory note states. The Ministry of Finance estimated additional revenues from tax increases at 2.6 trillion rubles, of which 533 billion came from personal income tax.