Russia’s President signs law raising tax on yearly personal incomes over $66,000 by 2%
MOSCOW, November 23 (RAPSI) – Russia’s President Vladimir Putin has signed into law a bill envisaging a raise in the rate of the personal income tax from 13% to 15% for citizens, whose incomes exceed 5 million rubles (about $66,000) a year, according to a statement on the official website of the lower house of Russia’s parliament.
The new tax rate is to be in effect since January 1, 2021; it applies to the amounts exceeding the 5 million rubles threshold, whereas the current 13% rate remains in force as to below-threshold incomes of such taxpayers, the statement reads.
Russia’s Government expected the bill, if signed into law by the President, to additionally bring into the budget about 60 billion rubles ($800 million at the current exchange rate) in 2021, about 64 billion rubles ($840 million) in 2022, and 68.5 billion rubles ($900 million) in 2023.
The respective additional tax revenues are planned to be spent for treatment of children suffering from serious and rare diseases, whereas all current federal and regional treatment programs are to be continued, according to the State Duma Chair Vyacheslav Volodin.