Russian Federation

Individual - Significant developments

Last reviewed - 12 February 2021

As a temporary measure, individuals may voluntarily declare themselves Russian tax residents in 2020 if their stay in Russia in 2020 exceeds only 90 days. In order to enjoy this possibility, individuals should file an application (in any format) with the tax authorities by 30 April 2021.

Progressive tax rates 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.

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.