Personal income tax 2% up in Russia

Russian government has a “national action plan to restore employment and people’s incomes, as well as to provide economic growth and long-term structural changes in the economy,” Prime-Minister Mikhail Mishustin stated at a government meeting.


As the government website reports, he noted devastating effects “the coronavirus pandemic has had on people’s incomes and overall economic development. We have to re-launch positive processes and continue to advance. The plan aims to restore full employment and purchasing power, support individual, small and medium-sized businesses, launch a new investment cycle, improve the business environment, accelerate technological development of the economy, boost exports, and support import substitution.”

The government is to pay special attention to the Far Eastern regions of the country, and “within the next four years, all key indicators of quality of life in these regions should grow faster than Russia’s average. Efforts should be taken to improve the demographic situation and curb the migration outflow,” he stressed. “According to the plans, housing construction volumes will increase by over 50% by 2024. At least 200 enterprises and 30K new jobs will be created in priority socioeconomic development areas as well as at the Free Port of Vladivostok.” Among other initiatives, Mishustin spoke of reviewing personal taxation, pointing out that “starting next year, the income tax rate for individuals earning an annual income of more than RUR 5 mio ($67K) will increase from 13 to 15%.” In his view, “this approach aligns with the principle of social equity as well as with the social responsibility of citizens who have an income above the average. This is the core of the draft law.”

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