Putin announces 15 percent income tax increase for high-earning Russian citizens

Beginning on January 1, 2021, income tax in Russia will increase from 13 percent to 15 percent for citizens who earn more than 5 million rubles per year (around $73,000), President Vladimir Putin announced during an address on June 23.

The introduction of a new, 15 percent income tax rate for this bracket effectively means that Russia is cancelling its flat taxation rate.

According to Putin, this increase in personal income tax will provide approximately 60 billion rubles (more than $874 million) in additional revenue to the state budget.

Putin claimed that this revenue will be used to fund treatment for children with rare diseases, and to purchase medical equipment.