On Wednesday, the State Duma adopted in the first reading a project to increase personal income tax to 15% for income above 5 million rubles a year. In this case, the RF Ministry of Finance after discussion with the Parliament agreed to clarify the list of income subject to increased taxation, excluding income from the sale of any personal property of citizens, except for securities, and from insurance payments.
"Based on these exceptions, it is possible to assume that the government plans to introduce changes in rates gradually, it is possible that in the future rates on other types of income will increase," - suggested Pavlova.
The Ministry of Finance justified the proposed changes by the fact that without them the increased tax would have to be paid to citizens with low incomes. The authorities expect that this measure will affect only a small part of the population with high incomes. The Ministry of Finance has always stressed that the personal income tax rate in Russia remains attractive even with this increase.
Income from personal income tax is allocated to the regional budgets, but the funds collected in the form of an increased rate, according to the draft budget for 2021-2023, will go to the federal budget, and these funds will be used to finance treatment of children with rare serious diseases. The Ministry of Finance expects additional 190 billion rubles in revenue from this measure in three years..
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