Bellerage

Alteration of personal income tax scale

Alteration of personal income tax scale

Starting from 2019, new rates may be introduced for personal income tax.

 The relevant legislation is currently being considered by the State Duma. Instead of a flat rate of 13%, a progressive four-rate scale might be implemented: 

1. If annual earnings do not exceed 100 KRUB, the tax rate will be lowered to 5%;

2. For annual income from 100 KRUB to 3 million rubles the tax will constitute 5 KRUB plus 13% of the amount over 100 thousand rubles;

3. If the annual earnings are in the range of 3 million rubles to 10 million rubles, the tax will be equal to 382 thousand rubles plus 18% of the amount over 3 million rubles;

4. If the income exceeds 10 million rubles a year, the tax will be withheld in the amount of 1.642 million rubles plus 25% of the amount over 10 million rubles.

According to the authors of the bill, this amendment will bring more than 1 trillion rubles of additional taxes in 2019.