Autumn Tax Bill: Personal Income Tax (PIT) Reform
The Russian Government has submitted a major tax bill to the State Duma, proposing amendments to the Tax Code and several federal laws.
We previously covered the planned reform of the tax exemption under paragraph 17.2 of Article 217 of the Tax Code— read more here.
In the revised version of the draft law, the following key changes are proposed:
- Abolish the PIT exemption for the sale of shares and interests in foreign companies, for an exit from a company or redemption of shares/interests, as well as for the sale of interests in LLCs where more than 50% of assets consist of real estate.
- Restrict tax benefits for individuals designated as “foreign agents” (in accordance with Federal Law No. 255-FZ):
– prohibit the use of exemptions under subparagraphs 17.1, 17.2, and 17.2-1 of Article 217 of the Tax Code;
– subject to PIT income received through inheritance or gifts;
– deprive such persons of the right to investment tax deductions and long-term savings deductions;
– set a 30% tax rate on income from employment, dividends, and interest on deposits.
If you would like to assess how these changes might affect your ownership structure or overall tax burden, our team is ready to assist with detailed analysis and adaptation to the new rules.
