Russian President Vladimir Putin has signed a new law increasing the corporate profit tax rate, as detailed on the official legal acts publication website.
5% Tax Jump
According to Lenta this significant legislative change will see the tax rate jump by 5 percentage points—from the current 20% to 25%.
Starting in 2025, the federal portion of the corporate profit tax will rise from 3% to 8%, while the regional portion will remain at 17%. However, beginning in 2031, the regional tax rate will increase to 18%, facilitated by a reduction in the federal rate to 7%.
Despite these changes, Russia will maintain the so-called "grandfather clause," which protects investors from alterations in tax legislation, providing some stability amid the tax hikes.
New System From 2025
In addition to corporate tax reforms, Putin recently enacted a progressive income tax scale for individuals, effective from 2025.
This system introduces varying tax rates based on annual income. Russians earning less than 2.4 million rubles per year will pay a 13% tax rate. Those with incomes between 2.4 million and 5 million rubles will face a 15% rate, while earnings from 5 million to 20 million rubles will be taxed at 18%. For incomes between 20 million and 50 million rubles, the rate increases to 20%, and the highest bracket, for those earning over 50 million rubles annually, will be taxed at 22%.
These new income tax rates will not apply to combat participants in Ukraine and northern bonuses, ensuring certain groups are exempt from the increased financial burden.
