Russian Finance Ministry proposes raising special tax rate for personal funds from 15% to 22% - source
MOSCOW. Sept 25 (Interfax) - The Russian Finance Ministry proposes increasing the tax rate for personal funds from 15% to 22% for those whose income consists of more than 90% passive income, including dividends, bond payments and income from renting out real estate, a source familiar with the draft amendments to the Russian Tax Code said.
This document is part of the budget package of bills that the Finance Ministry submitted to the government.
Currently, personal funds pay tax on income at a special rate of 15% if more than 90% of such receipts relate to passive income (dividends, interest income from debt obligations of any type, the renting of real estate, the distribution of profit or property of organizations, income from transactions with derivative financial instruments, and so on). If the condition on the structure of the fund's income is not met, a rate of 25% applies.
The Finance Ministry proposed increasing the special rate for personal funds from 15% to 22%, a source familiar with the text of the bill said. The list of incomes that will be counted as "passive" is also being expanded, the source said. It is proposed that receipts from the sale of securities certifying debt obligations and debt digital financial assets among them be included.
Currently, personal funds can be either hereditary (registered after death) or inter vivos - created for managing property, business and assets. The minimum contribution to such a fund is 100 million rubles.
On Thursday, the Finance Ministry announced its intention to include passive income in the main tax base for personal income tax at rates of 13%-22%, including on dividends and from other equity participation, on interest from deposits, on transactions with securities and digital rights, from the sale of property and the sale of participation interests, and under insurance and gift agreements. Under current rules, "passive income" is taxed at rates of 13%-15%.
