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The text of the legislative draft with complex changes to the parameters of the tax system has been prepared.

As part of the planned tax reform, the legislative draft, which is based on the principle of fairness and efficiency in the redistribution of revenues between different segments of the population and sectors of the economy has been sent to the State Duma.

The legislative draft provides for large-scale changes to the Tax Code of the Russian Federation, including, in particular:

  • the introduction of a multi-stage progressive scale of the personal income tax depending on the amount of income, as well as the introduction of new tax deductions, including for families with two or more children;
  • it is planned to increase the income tax rate, change the approach to taxation of small and medium-sized businesses in order to suppress business fragmentation schemes, and to maintain innovative activity it is planned to increase the surcharge rate on R&D expenses to 2;
  • measures are provided aimed at suppressing indirect tax evasion schemes, it was also proposed to supplement the list of excisable goods to increase control on the tobacco market and pharmaceutical activities;
  • it is proposed to expand the powers of the constituent entities of the Russian Federation to establish higher tax rates of property taxes on high-value property;
  • the parameters that provide the opportunity to apply the simplified tax system have been expanded, at the same time, taxpayers using the simplified tax system are recognized as VAT payers, with the introduction of features of the application of this tax;
  • it is proposed to increase the level of MET rental income taxation;
  • incentives and support for small and medium-sized businesses in the manufacturing industries are provided by reducing insurance premium rates.

Document: Draft of the Federal Law N 639663-8 “On Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation” (to improve the tax system) (introduced by the Government of the Russian Federation).