Tax laws Russia
Russia's taxation system encompasses a variety of taxes, including personal income tax, corporate taxes, value-added tax (VAT), and excise duties. Recent geopolitical events have led to significant adjustments in tax policies to support increased military expenditures.
Personal Income Tax:
- Progressive Rates: In 2024, Russia introduced a progressive personal income tax system:
- 13% Rate: Applies to annual incomes up to 2.4 million rubles (approximately $27,500).
- 22% Rate: Applies to annual incomes exceeding 50 million rubles (approximately $573,000).
Corporate Taxes:
- Profit Tax: Standard rate is 20%.
- Exit Tax: In response to sanctions and geopolitical tensions, Russia has increased the exit tax on foreign companies divesting their Russian assets from 15% to up to 35% over a two-year period. citeturn0news17
Value-Added Tax (VAT):
- Standard Rate: Set at 20%, applicable to most goods and services.
Recent Developments:
Increased Military Spending: Military expenditures now constitute approximately one-third of the 2025 federal budget, prompting the government to seek additional tax revenues.
Additional Tax Measures: To fund ongoing military operations, the government is considering further tax increases, including higher taxes on businesses and individuals.
Conclusion:
Russia's tax system is undergoing significant changes, primarily driven by the need to finance increased military spending. Both individuals and corporations are facing higher tax rates, and foreign businesses encounter substantial exit taxes. Staying informed about these changes is crucial for compliance and strategic financial planning.
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