The Ministry of Finance of the Russian Federation proposed to include passive income in the main tax base for personal income tax

The Ministry of Finance of the Russian Federation proposes to include passive income in the main tax base for personal income tax, including dividends and interest on deposits; the measure will affect no more than 6% of the population, or 4 million citizens, the press service of the Ministry of Finance reported on Thursday.

At a meeting on Thursday, the Russian government will consider the draft federal budget for 2027 and for the planning period of 2028 and 2029, as well as the forecast for socio-economic development for this period.

As indicated in the message, as part of the budget package, it is proposed to make certain changes to the Tax Code aimed at increasing the sustainability of the budget system. At the same time, the key principles of tax policy are preserved - fairness and efficiency of the tax system, the ministry emphasized.

“In order to unify the level of taxation of citizens’ income at rates of 13-22%, it is proposed to include in the main tax base for personal income tax “passive” income - from dividends and from other equity participation, from interest on deposits, from transactions with securities and digital rights, from the sale of property and the sale of participation shares, under insurance and gift agreements. Currently, “passive” income is taxed at rates of 13-15%,” the message says. Ministry of Finance.

The ministry explained that the tax rate will depend on the amount of income, and not on the method and source of its receipt. “This is more consistent with the goal of introducing a progressive personal income tax scale,” the department is confident.

“The proposed unification will affect no more than 6% of the population who have taxable income, which is about 4 million citizens,” the Ministry of Finance also indicated.