THE MINISTRY OF FINANCE HAS AMENDED THE PROGRESSIVE PERSONAL INCOME TAX SCALE

THE MINISTRY OF FINANCE HAS AMENDED THE PROGRESSIVE PERSONAL INCOME TAX SCALE

THE MINISTRY OF FINANCE HAS AMENDED THE PROGRESSIVE PERSONAL INCOME TAX SCALE
The Ministry of Finance has submitted draft amendments to the second reading of the draft law on the progressive scale of personal income tax. As Finance Minister Anton Siluanov noted, the changes will reflect, among other things, the proposals of entrepreneurs and parliamentarians voiced during public discussions of the novel.

According to Forbes, the government proposed to align the tax conditions for transactions with digital financial assets (CFA) and securities transactions. It is assumed that personal income tax rates for them will not exceed 15%. In addition, the Ministry of Finance proposes to change the parameters of the Mineral Extraction Tax for the extraction of coal and ore used in the production of fertilizers, as well as adjust the parameters of the excise tax on gas used in the production of ammonia. Entrepreneurs were skeptical about the increase in the Tax on the extraction of minerals in the extraction of iron ore and the production of fertilizers.

It is also proposed to introduce a single personal income tax amount for owners of five or more controlled foreign companies. This amount will be 25 million rubles. Currently, the payment does not depend on the number of companies, and one option is for the owners of Controlled foreign companies to pay tax on the fixed profits of all companies.

In addition, it is proposed to increase the tax deduction for citizens who have passed the TRP standards to 18,000 rubles. In the first reading, it was proposed to introduce a tax deduction in the amount of 6,000 rubles per year.

The Ministry of Finance also proposed to reduce the income tax rate of IT companies to 5% by 2030 and provide for the possibility for such companies to apply benefits during reorganization in the form of allocation, as well as expand the list of incomes of enterprises of the radio-electronic industry that are taken into account for the application of reduced tariff rates of insurance premiums.

The government also wants to increase the tax on the processing centers of betting companies three times, index excise tax rates on excisable goods to a projected inflation rate of 4%, and grant regions the right to introduce reduced tax rates on profits coming into their budget in 2025-2030. It is also proposed to convert the "resort fee" into a "tourist tax". Whether to introduce such a tax or not, as well as its size, will be decided by the municipalities themselves.

04.07.2024