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Increase in NDFL rate impacts 18,000 residents of Tomsk region

Implementing a five-tier progressive tax system could affect approximately 18,000 residents in Tomsk region, as around 3,000 individuals who earned over 5 million rubles previously paid more tax, reveals Yuriy Kurilenko, the head of the local branch of the Federal Tax Service.

Increase in NDFL rate impacts 18,000 residents of Tomsk region

In Tomsk, Starting January 1, 2025: Progressive Income Tax Changes Affecting 18,300 Residents

Starting from 2025, Russia will be implementing a five-tier progressive income tax (NDFL) scale. This new tax rate structure will potentially impact around 18,300 residents of the Tomsk region, as reported by regional tax officials.

Previously, it was reported that Russia would introduce a progressive 5-tier tax structure nationwide by 2025. For individuals whose annual income is below 2.4 million rubles, the tax rate will be 13%. For those with income ranging from 2.4 to 5 million rubles, the rate rises to 15%, followed by 18% for income between 5 and 20 million rubles, 20% for income between 20 and 50 million rubles, and 22% for income above 50 million rubles. In June 2024, experts predicted that over 13,000 residents of the Tomsk region would be affected by these changes [1].

"With the implementation of the five-tier progressive NDFL scale from January 1, 2025, the income bracket below 2.4 million rubles will be subject to the minimum tax rate of 13%. If the levels of income in 2025 remain the same as in 2024, the increased tax rates of 15%, 18%, 20%, and 22% will apply to 18,300 residents of Tomsk," said Yuriy Kurilenko, head of the regional tax office [2].

Progressive NDFL Scale and Exemptions

As reported earlier, the increased tax rate will apply to the portion of the income exceeding the threshold values rather than the total income. For instance, if a person's annual income is 3 million rubles, the first 2.4 million will be taxed at the rate of 13%, while the remaining 600,000 will be taxed at the rate of 15%.

While information about exemptions and specific tax brackets for the new scale is not provided clearly, there are generally available exemptions and reduced rates in Russian tax law. However, these exemptions may not be directly related to the new progressive tax scale.

[1] "Russia to Introduce Progressive Tax Scale by 2025: Rate Structure and Exemptions Unclear"

[2] "Tomsk Tax Chief Discusses Implementation of New NDFL Scale"

  1. The updated five-tier progressive income tax (NDFL) rate structure, starting from 2025, is projected to impact 18,300 residents of the Tomsk region.
  2. The first income bracket below 2.4 million rubles, under the new tax structure, will be subject to a minimum tax rate of 13%.
  3. For residents of Tomsk, the increased tax rates of 15%, 18%, 20%, and 22% will apply to their income if the levels remain the same as in 2024.
  4. While the details about exemptions and specific tax brackets for the new NDFL scale are not clear, there are generally available exemptions and reduced rates in Russian tax law.
Proposed tax progression scale introduction could potentially affect approximately 18,000 residents in Tomsk region, as nearly 3,000 people, whose income exceeded 5 million rubles, have been previously subjected to tax hikes. This information was shared by the regional head of the Federal Tax Service, Yuriy Kuriленко.

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