News “Difficult” decisions: increasing income tax rates
First. There is an increase up to 15% of the “unfair” tax rates on income in the form of interest and dividends going from Russia abroad to offshore jurisdictions named by the President of the Russian Federation. This rate is established by the Tax Code of the Russian Federation, but reduced rates provided for by international agreements on the avoidance of double taxation may be applied to the income of persons who are actually entitled to such income. Changes to these rates require adjustments to international agreements signed by the Government of the Russian Federation and foreign Governments. If such changes are not possible due to the reluctance of foreign partners, the Russian Federation is considering withdrawing from these agreements. And they will begin to apply these measures from the most “popular” offshore jurisdictions, through which significant of Russian origin resources.
Second. It is proposed to set the personal income tax rate at 13% on interest income if the total amount of Bank deposits or investments in debt securities of a citizen exceeds 1 million rubles. At present, in general, the amount of excess of interest income over the amount calculated based on the refinancing rate increased by 5 points for ruble deposits (9 % per annum for deposits in foreign currency) (Paragraph 1, Article 214.2 of The Tax Code of the Russian Federation). Realization of this measure, as well as any changes in the tax procedure, is possible by accepted the relevant the Federal Law.
It should be noted that changes in tax legislation are currently possible only from the beginning of the regular (next) tax period and changes that worsen the situation of taxpayers do not have opposite effect (Paragraph 1,2 , Article 5 of The Tax Code of the Russian Federation). Unless, of course, the Legislator do not changes the basis of the Tax Legislation of the Russian Federation.
Additional budget revenues received as a result of the realization of these “difficult” decisions are planned to be allocated specifically to finance measures to support families with children, the unemployed or people who are on sick leave. Most likely, the last 2 categories will include people who have suffered in one or another form from the epidemic of the Coronavirus infection.
News…
News “Difficult” decisions: increasing income tax rates
First. There is an increase up to 15% of the “unfair” tax rates on income in the form of interest and dividends going from Russia abroad to offshore jurisdictions named by…
How will be provide deferred payments of taxes and premium rates changed?
We recall that, in accordance with the current edition of The Tax Code of the Russian Federation, the Legislation of the Russian Federation about taxes and…
Which organizations can expect these tax preferences?
According to the address of the President of the Russian Federation, support should be provided to small and medium-sized businesses and microenterprises.