March 26, 2020

Anna Murray 

On March 25 Russian President Vladimir Putin announced a new tax plan which would impose a 15% tax on dividends and interest gained from foreign accounts. To avoid double taxation with other countries, President Putin added that the Russian government would organize such work accordingly. Russia will withdraw from these agreements unilaterally if foreign countries disagree with such measures.

At present all Russian citizens are paying an income tax of 13% regardless of their salaries. Gains from offshore funds are taxed at a rate of 2%. It was estimated only 1% of deposit holders will be affected by the new initiative. President Putin said a higher tax on dividend and interest income would be fair and stop capital flowing out of Russia.

In a televised speech prompted amid the Coronavirus outbreak, President Putin stated it was necessary to defer all taxes on small and medium-sized businesses for the next six months. In addition, President Putin mentioned microenterprises, as businesses with no more than 5 employees, should be granted a deferral on payments to social insurance funds.

Photo:Webshot.