Business · Economy · 6 hrs ago
Russia proposes taxing deposit interest under progressive income tax rates
Russia’s Finance Ministry has proposed changing how bank interest is taxed by adding it to people’s other taxable income.
The proposal would combine interest with earnings such as wages, dividends and profits from selling property or investments.
The combined income would face progressive tax rates of 13% to 22%, with the highest rate applying to annual income above 50 million roubles.
These higher rates apply only to the income within each tax band, not to a person’s entire income.
The change mainly affects people whose total annual income exceeds 2.4 million roubles, while the proposal says most savers would see no change.
An existing allowance would still exempt some interest income from tax; for income earned in 2026, the stated allowance is 160,000 roubles.
The plan could take effect on 1 January 2027 if lawmakers approve it, but it has not yet completed the approval process.
Russia’s Finance Ministry has proposed including bank deposit interest in the same tax base as other income subject to progressive personal income tax rates.
Under the proposal, rates would range from 13% to 22%, with the highest rate applying to annual income above 50 million rubles.
The changes would affect people whose combined annual income exceeds 2.4 million rubles; the article says most depositors would see no change in their tax burden.
The proposal would preserve a tax-free allowance for deposit interest, set at 160,000 rubles for income earned in 2026.
If approved, the new rules would take effect on January 1, 2027.
- Who
- Russia’s Finance Ministry proposed the changes, which would affect depositors with combined annual income above 2.4 million rubles.
- What
- The ministry proposes including deposit interest in the common tax base for progressive personal income tax rates.
- When
- If approved, the rules would take effect on January 1, 2027.
- Where
- Russia.
- Why
- Not stated
This story does not have two clearly opposing sides.
The tax-free allowance for deposit interest is set at 160,000 rubles.
The proposed rules would take effect if they pass approval and readings in the State Duma.
- Proposed maximum rate
- 22% on annual income above 50 million rubles
- Income threshold
- 2.4 million rubles a year
- Tax-free allowance for 2026 income
- 160,000 rubles
- Proposed start date
- January 1, 2027