Russian budget to get 1.75 trln rubles windfall from profit tax hike in 2025 - MinFin

MOSCOW. Dec 25 (Interfax) - Russia's federal budget will receive a windfall of 1.7 trillion-1.75 trillion rubles from hiking the profit tax rate from 20% to 25% in 2025, Deputy Finance Minister Alexei Sazanov said at the "Tax Results of the Year. Dialogues on What Matters" conference organized by the Association of European Businesses."

"Regarding income tax, revenue expectations are being met: when we adopted the changes, we forecast 1.8 trillion rubles of additional revenue, and this year we are actually reaching 1.7 trillion-1.75 trillion rubles," the Finance Ministry quoted him as saying in a statement.

Sazanov also said it would only be fair to assess the results of widening the progressive personal income tax scale based on the current year's results, including January and February of next year, when the situation with bonuses and premiums that companies usually pay at the end of the year becomes clearer. The real impact of additional personal income tax revenues will be visible then, he said.

As for the introduction of a minimum tax rate of 15% on the profits of international holding companies in connection with Pillar 2, Sazanov said this change was intended to safeguard the Russian tax base, not to generate windfall budget revenue, so potential revenue from this measure was not factored into in next year's budget. "Our main goal is to prevent additional taxes from being paid from the Russian tax base in foreign jurisdictions. The Federal Tax Service estimated potential revenue at 15 billion-20 billion rubles. However, the Finance Ministry has no revenue expectations, we haven't even budgeted for them. It's hard to say for sure which organizations will pay additional tax and how much. We'll see this based on the results of 2026," he said.

Sazanov also said that following a request by businesses, the Finance Ministry did not currently plan to incorporate non-tax payments into the Tax Code. "If non-tax payments are transferred to the Tax Code, then all tax control measures and recovery procedures will apply to them. Recognizing the consequences of such a transfer, businesses themselves have opposed it. So the issue is off the agenda for now," he said.