Russia increases tax obligations for companies and highly profitable citizens

The Russian government approved a phased increase in tax obligations for companies and highly profitable citizens of the country.

The Government of the Russian Federation discussed the proposal of the Ministry of Finance of the Russian Federation to amend tax legislation at a meeting held in the capital of the country of Moscow.

According to the proposal approved following the meeting, the tax liabilities for companies and highly profitable citizens of the country are increasing.

Income tax rate for those who earn in Russia from 2.4 million to 5 million rubles a year increased from 13 to 15 percent. The income tax rates increased to 18 percent for those who make money from 5 to 20 million rubles, and up to 22 percent for those who earn more than 50 million rubles.

The corporate tax rate in the country also increased from 20 to 25 percent, and the income tax rate for those who earn less than 2.4 million rubles a year remained unchanged – 13 percent.

Russian Prime Minister Mikhail Mishustin stated at a meeting that the increase in taxes would affect about 2 million people.

The Russian government plans that these changes will provide the budget with additional income in the amount of about 2.6 trillion rubles (about 30 billion dollars) per year.