Russia is set to implement a new progressive tax system next year, introducing five income brackets in place of the current two. The changes, proposed by the Finance Ministry, aim to create a stable economic environment and boost the country’s economic well-being. Workers earning up to $26,900 annually will pay 13% tax, while the highest earners with incomes exceeding $560,600 will pay 22%. These amendments are expected to generate over $29 billion for state coffers in 2025.
Furthermore, Russia’s tax system, even with the new five-bracket scale, will remain competitive compared to neighboring countries like Belarus and Armenia. The Finance Ministry is confident that these changes will align with international standards while maintaining a favorable environment for businesses and citizens.
Unlike Western nations with higher personal income tax rates, Russia’s new system aims to strike a balance between generating revenue and attracting investments. The Finance Ministry’s proposed changes are set to be approved by parliament in the coming months before taking effect on January 1, 2025. Stay updated with RT for more economic and financial news.