The Ministry of Finance has submitted a package of bills to the government, including amendments to the tax and budget codes. Alexey Stanchin, Senior Tax Consultant at TC, commented on a number of the proposals for Kommersant.

Previously, the Tax Compliance team has already written about the main proposals of the agency, which proposes the following changes to the tax system:

For individuals

Personal income tax will depend on annual income:

• for incomes up to 2.4 million rubles will retain the 13% rate;
• for incomes from 2.4 million rubles to 5 million rubles. - 15%;
• for income from 5 million rubles to 20 million rubles. - 18%;
• for income from RUR 20 mln. to RUR 50 mln. - 20%;
• for income over 50 million rubles. - 22%.

At the same time, the increased tax rate will be applied not to the entire amount of income, but to the amount of its excess over the thresholds. 

Families with two or more children and income below 1.5 subsistence minimums per person per month will be able to receive a tax deduction. Thus, the actual personal income tax rate for such families will be 6%. It is also proposed to introduce personal income tax deductions for passing TRP standards and annual medical examination.

Taxes on income from the sale of immovable property will remain at 13% up to the amount of 2.4 million rubles, and above - 15% without further progression.

For legal entities

It is proposed to increase the profit tax from 20% to 25%. At the same time, additional profit tax revenues will be directed to investments in technological and infrastructure projects necessary for the creation of a new economy.

Alexei Stanchin noted that in the draft law against the background of tax increases in various directions, keeping the maximum personal income tax rate on dividends and shares at 15% is a logical decision, in line with the practice of foreign countries, as its increase could lead to increased interest of taxpayers to change tax residency.

On May 30, the Government approved the proposed package of bills. Further the documents will be considered in the State Duma. 

The Tax Compliance team will continue to follow the changes in the tax system.