The President of Russia signed the law on the progressive scale of personal income tax

Starting from January 1, 2025, a progressive personal income tax (personal income tax) scale will be introduced in Russia. The new law signed by President Vladimir Putin sets the following rates:

• Up to 2.4 million rubles per year — 13%.
• From 2.4 to 5 million rubles — 15%.
• From 5 to 20 million rubles — 18%.
• From 20 to 50 million rubles — 20%.
• Over 50 million rubles — 22%.

The increased rates will only apply to the amount exceeding the established thresholds.

Exceptions and features

The changes will not affect payments to participants of their allowances for workers in the Far North and other difficult climatic conditions.

For taxpayers controlling five or more foreign companies (CFC), a fixed amount of profit is introduced to pay personal income tax — 120.9 million rubles.

Tax deductions

The law introduces a new tax deduction for the delivery of TRP standards in the amount of 18 thousand rubles. Standard deductions for children have been increased: for the second child — up to 2.8 thousand rubles, for the third and subsequent — up to 6 thousand rubles. The income limit for receiving standard deductions for children has been increased to 450 thousand rubles.

The provision of deductions will be undeclared through the employer, while the taxpayer will have to provide the necessary documents to receive the deduction for the first time and notify about changes in the grounds for deduction.