Russia to Introduce Increased Taxation for High-Income Individuals and Reduced Taxation for IT Companies

Russian President Vladimir Putin has reportedly announced that an increased income tax rate will be introduced on high-income earners from 2021. This includes that the 13% rate would continue to apply on individual income up to RUB 5 million, with income exceeding that amount subject to a new increased rate of 15%.

Further to the new increased rate, an "ultra-low tax regime" will be introduced for Russian IT companies. This is to include a reduced corporate tax rate of 3% and reduced social…