Anton Kabakov shared his opinion on why the personal income tax rate is being raised in Russia

The President of the Russian Federation announced this year an increase in income tax up to 15% on earnings over 5 million rubles per year. Anton Kabakov, partner at Forte Tax & Law, shared his opinion on what really motivated this decision on the online channel Vot-tak.tv run by the independent Belarusian TV channel Belsat.

Anton commented that, in addition to changes to personal income tax, the President also proposed to provide taxpayers with the right to replace the payment of taxes on retained earnings of controlled foreign companies (CFC) with a fixed amount of 5 million rubles.

“This is in fact close to an exemption conferring the right to pay lower taxes on excess profits. The tax burden on very wealthy people has not been increased. Quite the opposite, this gives an opportunity to reduce it. That’s why it seems to me that the introduction of this 15% personal income tax rate has nothing to do with social justice,” noted Anton.

To read the full article and Anton’s comments, please click on the link