The Ministry of Finance has proposed a progressive personal income tax scale

The Finance Ministry has proposed introducing a progressive tax scale (personal income tax) on personal income with a rate of 13% to 22%, TASS reports . The relevant amendments were submitted by the department to the government for consideration. If approved, they will come into force in 2025.

"The adoption of the proposed changes will ensure stable and predictable conditions for citizens, businesses and regions for the next 6 years. And will provide growth in the economic well-being of the country," noted Finance Minister Anton Siluanov.

According to the department's proposal, the progressive tax scale will affect everyone whose income exceeds 2.4 million rubles per year or 200 thousand rubles per month. For incomes from 2.4 to 5 million rubles per year, the tax will be 15%. For people with incomes from five to 20 million rubles - 18%. For those whose income is in the range from 20 to 50 million rubles - 20%, and whose income exceeds 50 million rubles - 22%.

For citizens with an income of less than 2.4 million per year, the personal income tax rate will remain the same - 13%.

It is noted that people will pay an increased tax not on their entire income, but only on the amount exceeding the threshold. The changes being introduced will affect 3.2% of the country's working population, which is approximately 2 million people. At the same time, the changes will not affect participants in the war in Ukraine, Vedomosti reports , and families with two or more children will be refunded the personal income tax paid in the amount of 7% out of 13% - their personal income tax rate will actually be equal to 6%.

In addition, the tax rate on income from deposits, sale of securities and participation shares will also remain without further progression and will be 13% for amounts up to 2.4 million rubles and 15% for income above this amount. The same applies to dividends - the increased interest rate will not affect them.

According to economist Dmitry Polevoy, such a “sparing regime” for dividends is a “good gift” for the investor:

"The proposed scale of progression for personal income tax looks much more humane compared to the rumors circulating last week <...>. True, businesses will receive a 25% (currently 20%) profit tax, but instead of export duties. This is also quite "fair" in the current system of "fairness" coordinates," he noted.

As reported by RBC, the Ministry of Finance estimates the amount of additional budget revenues from the proposed changes at 2.6 trillion rubles.

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