The Russian Ministry of Finance Has Submitted Budget Package to the Government – Possible Amendments to the Tax Code of Russia

With a view to standardise the level of taxation on citizens’ income at rates of 13–22%, it is proposed to include ‘passive’ income in the main tax base for personal income tax: income from dividends and other equity interests; interest on deposits; income from transactions involving securities and digital rights; income from the sale of property and the disposal of equity interests; and income from insurance and gift contracts.

Currently, ‘passive’ income is taxed at preferential rates of 13–15%. The amendments will not affect the existing preference for small deposits – the tax-free threshold of up to RUB 1 million.

It is also proposed to increase the profit tax rate up to 35% on dividends paid to non-residents into ‘C’ accounts.

To level the playing field in the domestic market, it is proposed to apply VAT at the standard rate of 22% on the purchase of goods through cross-border e-commerce. E-commerce platforms will be required to pay this tax on behalf of their customers.

A customs duty of RUB 100 per parcel will also be introduced on goods for personal use worth up to EUR 200, sent from abroad by post.

Read about all the planned changes here:  minfin.gov.ru