The International Monetary Fund believes that lowering the personal income tax (PIT) rate is more conducive to stimulating Russian economic growth than lowering the value-added tax (VAT). The Russian government proposed reducing the VAT rate from 20% to 18% starting in 2004, and also lowering the PIT rate from 35,6% to 26% starting in 2005. On Friday, June 6, the Russian State Duma (Parliament) voted to lower the PIT rate. The tax brackets will be as follows: if income is less than 50.000 rubles per year (approximately €1.700), the tax rate will be 30%. If income is between 50.001 and 600.000 rubles per year (approximately €1.700 to €20.000), the tax rate will be 15%; if income exceeds 600.000 rubles per year, it will be 5%. The document came into effect on January 1, 2005. The Russian government and the President support this reform, while the Pension Fund opposes it.
Any questions about this news?
Talk to Coexia, the AI of the foreign trade
International business service providers
Credit and caution
Leading operator of domestic and export credit insurance in Spain, with a market share of 46%.read more...
Cesce
Cesce, the Spanish Export Credit Insurance Company, is the head of a group.read more...
