Russia Proposes Progressive Income Tax

By Jared Mondschein

July 7—Annual income of individuals would be taxed at a progressive rate according to a proposal submitted to the Russian State Duma July 3.

The proposed rates include:

• 13 percent for income more than 120,000 Russian rubles ($2,100) and up to 12 million rubles ($210,977);

• 18 percent for income more than 12 million rubles and up to 100 million rubles ($1.8 million);

• 23 percent for income more than 100 million rubles and up to 500 million rubles ($8.8 million); and

• 28 percent for income more than 500 million rubles.

Russia presently has a flat-rate income tax of 13 percent for resident workers on wage-related income. Nonresident workers are subject to a 30 percent tax rate, unless the nonresident receives residency status, which shifts the rate down to 13 percent.

To contact the reporter on this story: Jared Mondschein at jmondschein@bna.com

To contact the editor responsible for this story: Michael Baer at mbaer@bna.com

The proposed law is available, in Russian, at: http://static.kremlin.ru/media/acts/files/0001201506300095.pdf.

More information on payroll issues in Russia can be found in the Russia country primer.