However, the new rate would apply from 2021, and in that time, this number could be reduced, he said. Someone might prefer to register the IP to pay 6%, someone will simply lose a high-paying job or award in view of the difficult economic situation.

According to the proposal of Russian President Vladimir Putin, the personal income tax rate will increase from 13% to 15% for citizens with income exceeding five million rubles a year.

Rosstat publishes data on the number of people with incomes over 250 thousand rubles a month (about three million rubles a year) – those in the country about half a million people. It is obvious that among them the proportion of people with a salary more than 400 thousand rubles per month is small, said the managing Director of group of ratings of authorities Agency, NKR Andrey Piskunov.

the Increased rate will not be taxed on all income but only the portion which exceeds five million rubles, said the President. Additional budget revenues, he said, will amount to 60 billion rubles per year.

If a person’s salary, for example, 700 thousand rubles a month, 15% will be subject to 280 thousand rubles, and the difference in the amount of personal income tax will be for him only 5.6 thousand rubles, said officials.