Russian Federation

Individual - Significant developments

Last reviewed - 12 February 2021

Progressive tax rates for most types of income have been introduced from 1 January 2021. Income up to 5 million Russian rubles (RUB) will be taxed at the rate of 13%, whereas the amount exceeding this threshold will be taxed at the rate of 15%.

Russia has changed double tax treaties (DTTs) with some countries to increase the rates on dividends and interest. The DTT with the Netherlands was denounced and will expire on 01.01.2022.

From 2021, income from the sale of shares and participatory interest, both in Russian and foreign entities, may be exempt from taxation after a five-year ownership term, provided certain conditions are met.

Starting from 2021, taxpayers will be eligible to pay an annual tax of RUB 5 million on all of their controlled foreign companies (CFCs) without assessing the income tax for each one if the specific application is submitted.