"Alexey Sazanov states that there is no implementation of a new scale for the NDFL currently being considered."
The Russian economy is navigating through a storm of high interest rates, economic slowdown, a strengthening ruble, and decreasing oil prices. Despite these challenging circumstances, certain aspects of the country's tax system are showing resilience.
One of the recent changes in the tax landscape is the shift of bonus payments to December of the previous year, a move intended to even out the payments by the end of the year.
On the corporate tax front, the maximum NDF tax rate on dividends remains at 15%, a decision that is not temporary. Meanwhile, the transition to calculating the tax base of exporting companies in rubles has been postponed due to potential manipulation in the Russian market.
The oil industry, while profitable, is not in need of additional support for hard-to-recover oil reserves at this time. The scheme using the Brent oil price for tax calculation is no longer in use, with the Ministry of Finance now using the prices of Russian Urals and premium ESPO instead.
In terms of fiscal reforms, the new 5-tiered personal income tax (PIT) rate system was introduced in 2025, replacing the previous flat tax rate. The tiers range from 13% to 22% depending on income level. However, detailed performance reports or analyses regarding the impact of this new PIT structure are yet to be seen.
The Ministry of Finance is working on a proposal to consider reducing the income threshold for VAT payment by businesses on USTN no earlier than 2028. Currently, less than 4% of entrepreneurs on USTN are VAT payers, and a further reduction could significantly increase their number.
On the international front, the Ministry of Finance is conducting expert-level consultations on the possibility of concluding new or reviewing existing double taxation avoidance agreements with Azerbaijan and Bahrain.
The world is also experiencing turbulent economic conditions that are affecting tax revenues. In this context, the Ministry of Finance is ready to consider the use of high-quality, representative Russian quotes with good liquidity for tax calculation.
As the first few months of the new PIT system's implementation pass, the focus shifts towards gathering comprehensive economic and taxpayer behavioural data to evaluate its performance and practical implications.
In the midst of ongoing challenges in the Russian economy, the Ministry of Finance has decided to shift bonus payments to December of the previous year as a move to even out payments by the end of the year, experimenting with the finance and business side of the tax system.
On the corporate level, while the oil industry is profitable, the Ministry of Finance has changed the scheme for tax calculation from Brent oil price to the prices of Russian Urals and premium ESPO, indicating a strategic shift in finance and business decision-making.
