Russia Proposes Major Tax Increases on Income, E-commerce, and Corporate Earnings
What happened
The Finance Ministry submitted its draft budget proposal for 2027 on Thursday, introducing a series of tax increases to fund soaring military spending. The proposal outlines a new progressive tax scale of 13% to 22% on passive personal income, including bank deposit interest and stock dividends. Additionally, the draft budget proposes a 35% tax on dividend payouts to non-resident 'Type C' bank accounts and subjects mutual investment funds to a 15% tax on passive earnings.
From themoscowtimes.com
Why it matters
The hikes also include a 22% value-added tax on cross-border online retail purchases and a flat customs fee of 100 rubles on small international packages. Furthermore, mining and metallurgical companies would face a 30% tax on excess earnings generated by recent commodity price spikes.
From themoscowtimes.com
Who's involved
- finance ministryResponsible for government finances and economic policy in Russia.
- KremlinThe entity whose policies are being addressed by the Finance Ministry.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- finance ministrySpeculative
The Finance Ministry's revenue targets could be impacted by the successful implementation of the new tax structure.
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The entities involved
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finance ministry
type of ministry responsible for government finances and economic policy
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Kremlin
fortified complex in Moscow, Russia