In Russia, the Ministry of Finance is examining a plan to raise the personal income tax from 20% to 25%. The ministry’s briefing materials present this option as part of a broader look at the country’s tax system.
Data from the materials show that the share of profitable companies in Russia grew from 73.9% in 2022 to 75.3% in 2023, with many industries shifting from losses to profits. The document argues that the current 20% rate is relatively low compared with other developed economies. For comparison, the United States applies a 21% federal rate plus state taxes, Argentina, the Netherlands, China, and Iran sit around 25%, Canada hovers near 38%, and Australia around 30%. (Source: Ministry of Finance briefing materials)
Public figures weigh in on the tax discussion. Billionaire Vladimir Potanin has voiced support for higher income taxes, while some major corporations indicate they can accommodate higher wage costs. On May 28, the Ministry of Finance submitted a package of draft laws to Russia’s government. The package includes amendments to the 2024 budget law and planning provisions for 2025 and 2026, as well as changes to the Tax and Budget Codes. These proposals will be reviewed by the legislative commission and then taken up at a government meeting. The aim is to align the measures with the guidance delivered in the president’s address to the Federal Assembly on February 29, 2024. (Source: ministry filing and public statements)
In his address to the Federal Assembly, President Vladimir Putin called for reshaping the tax burden so that those with higher personal and corporate incomes contribute more. That stance has framed the policy debate around how tax revenue should be redistributed to support national priorities. (Source: presidential address)
The broader discussion in Russia has also included proposals to simplify personal income tax structures and to reassess exemptions and deductions to reflect evolving economic conditions. Observers note that any changes would unfold in a multi-year planning horizon and would require careful planning to minimize adverse effects on investment and consumer spending. (Source: official materials and economic analyses)