Personal Income Tax
Posted: Tue Jan 07, 2025 10:03 am
Amendments to the Tax Code will come into force on January 1, 2025, which will lead to large-scale changes in corporate and personal taxation. Businesses will have to seriously prepare for the new realities. Yulia Kalinkina, head of tax expertise at the consulting company NEO, spoke in detail about the innovations.
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Content:
Corporate income tax
Simplified taxation system
Amnesty in case of fragmentation
New rate of income tax
New Federal Investment Deduction
In six months, Federal Law No. 176-FZ of poland telegram will come into force. In addition, on July 23, 2024, the State Duma adopted a law on the implementation of the main directions of tax policy for 2023-2025. It remains to wait for its approval by the Federation Council, signing by the President and official publication.
Let's look at the main changes that tax reform will bring to Russia.
Personal Income Tax
The 2025 tax reform implies the introduction of a progressive scale for the payment of personal income tax. The tax rate will depend on the amount of personal income.
We answer questions about the anti-money laundering law and advise you on what to do if you encounter restrictions in the course “The most important things about 115-FZ” .
There will be five bets in total :
13% - on income up to 2.4 million rubles per year;
15% - on income from 2.4 to 5 million rubles per year;
18% - on income from 5 million to 20 million rubles per year;
20% - on income from 20 million to 50 million rubles per year;
22% — on income from 50 million rubles per year.
Important : the increased rates (starting from 15%) will only apply to that portion of income that exceeds the relevant threshold.
For some types of income, only rates of 13% (up to 2.4 million rubles per year) and 15% (over 2.4 million rubles per year) are provided. Such incomes are:
dividends;
income from the sale of property;
income from operations with securities and derivatives;
income from the sale of shares in the authorized capital of Russian companies;
income from securities lending transactions;
interest on deposits (account balances) in banks located in the territory of the Russian Federation.
Previously, income from the sale of shares and stakes owned continuously for 5 years, as well as from the sale of securities of Russian high-tech companies, was exempt from personal income tax. From 2025, the benefit will apply only to tax residents of the Russian Federation and only for incomes of up to 50 million rubles. Most likely, if this threshold is exceeded, an individual will have to pay personal income tax at a rate of 13% on an amount up to 2.4 million rubles, and above it - 15%. However, there is no clarification from legislators on this topic yet.
Company owners should carefully study the changes in the tax reform from 2025. If there are plans to sell shares in the authorized capital, options for their sale should be considered before the end of the current year if the expected income from them may exceed 50 million rubles.
The rates for paying tax on the fixed profit of a controlled foreign company (in relation to the profit of a CFC for the 2024 financial year) will also change.
The amount of fixed profit will depend on the number of CFCs :
1 CFC - 27,990,000;
2 CIC - 52,718,000;
3 or 4 CFCs - increase in profit by 22,727,300 for each CFC starting from the third;
5 or more CFCs — 120,899,900.
Previously, when switching to a fixed profit regime, taxpayers could pay a tax of 5 million rubles per year, regardless of the number of CFCs. From 2025, the tax for each CFC will be about 5 million rubles, but no more than 25 million rubles if there are 5 or more CFCs.
Taxpayers may consider the possibility of waiving the payment of personal income tax on fixed profits within the established deadlines if this option turns out to be less economically advantageous than the usual procedure. It is also possible to consider options for reducing the existing number of CFCs by simplifying ownership schemes, transferring assets to Russia, using family planning options, ownership through a closed-end mutual fund, etc.
Subscribe to RB.RU in Telegram
Content:
Corporate income tax
Simplified taxation system
Amnesty in case of fragmentation
New rate of income tax
New Federal Investment Deduction
In six months, Federal Law No. 176-FZ of poland telegram will come into force. In addition, on July 23, 2024, the State Duma adopted a law on the implementation of the main directions of tax policy for 2023-2025. It remains to wait for its approval by the Federation Council, signing by the President and official publication.
Let's look at the main changes that tax reform will bring to Russia.
Personal Income Tax
The 2025 tax reform implies the introduction of a progressive scale for the payment of personal income tax. The tax rate will depend on the amount of personal income.
We answer questions about the anti-money laundering law and advise you on what to do if you encounter restrictions in the course “The most important things about 115-FZ” .
There will be five bets in total :
13% - on income up to 2.4 million rubles per year;
15% - on income from 2.4 to 5 million rubles per year;
18% - on income from 5 million to 20 million rubles per year;
20% - on income from 20 million to 50 million rubles per year;
22% — on income from 50 million rubles per year.
Important : the increased rates (starting from 15%) will only apply to that portion of income that exceeds the relevant threshold.
For some types of income, only rates of 13% (up to 2.4 million rubles per year) and 15% (over 2.4 million rubles per year) are provided. Such incomes are:
dividends;
income from the sale of property;
income from operations with securities and derivatives;
income from the sale of shares in the authorized capital of Russian companies;
income from securities lending transactions;
interest on deposits (account balances) in banks located in the territory of the Russian Federation.
Previously, income from the sale of shares and stakes owned continuously for 5 years, as well as from the sale of securities of Russian high-tech companies, was exempt from personal income tax. From 2025, the benefit will apply only to tax residents of the Russian Federation and only for incomes of up to 50 million rubles. Most likely, if this threshold is exceeded, an individual will have to pay personal income tax at a rate of 13% on an amount up to 2.4 million rubles, and above it - 15%. However, there is no clarification from legislators on this topic yet.
Company owners should carefully study the changes in the tax reform from 2025. If there are plans to sell shares in the authorized capital, options for their sale should be considered before the end of the current year if the expected income from them may exceed 50 million rubles.
The rates for paying tax on the fixed profit of a controlled foreign company (in relation to the profit of a CFC for the 2024 financial year) will also change.
The amount of fixed profit will depend on the number of CFCs :
1 CFC - 27,990,000;
2 CIC - 52,718,000;
3 or 4 CFCs - increase in profit by 22,727,300 for each CFC starting from the third;
5 or more CFCs — 120,899,900.
Previously, when switching to a fixed profit regime, taxpayers could pay a tax of 5 million rubles per year, regardless of the number of CFCs. From 2025, the tax for each CFC will be about 5 million rubles, but no more than 25 million rubles if there are 5 or more CFCs.
Taxpayers may consider the possibility of waiving the payment of personal income tax on fixed profits within the established deadlines if this option turns out to be less economically advantageous than the usual procedure. It is also possible to consider options for reducing the existing number of CFCs by simplifying ownership schemes, transferring assets to Russia, using family planning options, ownership through a closed-end mutual fund, etc.