Russia Proposes Progressive Income Tax

Payroll on Bloomberg Tax is built to get you to the right answer faster and more efficiently. Get all the payroll intelligence you need with Bloomberg Tax expert analysis, perspectives and...

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

To contact the editor responsible for this story: Michael Baer at

The proposed law is available, in Russian, at:

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

Request Payroll