The list of incomes for the application of the personal income tax rate of 15% is clarified

In the first reading, a bill was adopted on the introduction of progressive personal income tax from 2021.

At the same time, some amendments for the second reading are already ready. The list of incomes subject to an increased personal income tax of 15% will be clarified.

The main principle of the bill is the application of an increased personal income tax rate to periodic and active incomes over 5 million rubles directly related to the labor activity of people (including salaries and dividends), and the exclusion of irregular incomes from the calculation base. This is reported by the Ministry of Finance.

We consider it reasonable to apply this approach, when personal income tax is increased for periodic payments, while the measure does not affect most irregular incomes and one-time payments, the Ministry of Finance said.

Otherwise, the increased tax would have to be paid, among other things, to people with low incomes, which generally contradicts the concept of introducing a new tax rate and the principle of social justice.

For example, the personal income tax rate of 15% would have to be applied even in cases where the person’s annual earnings at the place of work are far from the threshold of 5 million, but when summed up with a one-time income from the sale of property, it exceeded it. Obviously, it would be unfair to apply a new increased rate in such cases, since a person does not receive an appropriate level of income on a permanent basis. Recall that the new rate will apply exclusively to the part of income that exceeds 5 million rubles per year. When determining the parameters of the rate increase, it was assumed that the measure would affect only a small part of the population with high incomes. And at the same time, it did not lead to an outflow of tax residents – in comparison with other countries, the personal income tax rate in Russia remains more attractive, even taking into account the increase

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