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Taxes for relocated Russians may grow 600%

A bill abolishing tax privileges and increasing taxes for the Russians who left the country, including after the launch of the special military operation, will concern sole proprietors and self-employed people, according to deputy head of the United Russia parliamentary faction Andrei Isayev, TASS reports. 

Andrei Isayev, deputy head of the United Russia parliamentary faction Andrei Isayev. Grigory Sysoev / RIA Novosti

The State Duma member believes that the tax rate for the relocated Russian freelancers must be at least equal to the income tax paid by hired employees, or 30% for non-residents.

As tax expert and manager of the website on the simplified taxation system in Russia Nikolai Yepikhin explains, the self-employed currently pay 4% on the income from work for private individuals and 6% for the work they do for legal entities. Sole proprietors pay the tax rate according to their specific tax regime. More commonly, they choose a simplified taxation system or a patent system. The general taxation system, used rarely, also requires paying a value-added tax. Under the simplified taxation system, the tax rate depends on the object of taxation. The maximum rate for expenses equals 15% and for income 6% although many regions have reduced their tax rates significantly. The tax rate under the patent system equals 6% of potential income and sole proprietors pay a fixed patent fee to the federal budget.

“If the tax rate for the relocated sole proprietors and self-employed is increased to 30%, the amount of taxes collected will grow 200% to 600%.”

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