The Russian Finance Ministry has proposed consolidating proceeds from property sales with wage income for taxation purposes, with a top marginal rate of 22%

The Russian Ministry of Finance has drafted legislation to extend the scope of progressive personal income tax to include capital gains from real estate transactions. If enacted effective January 1, 2027, proceeds from property sales would be aggregated with other forms of income and subject to the same progressive tax system.

Proposed tax brackets: 13% on annual income up to 2.4 million rubles; 15% on income between 2.4 million and 5 million rubles; 18% on income between 5 million and 20 million rubles; 20% on income between 20 million and 50 million rubles; and 22% on income exceeding 50 million rubles. The Ministry estimates that this reform would affect no more than 6% of the population—approximately four million individuals.

However, property sales would remain exempt from taxation if the minimum holding period is met. In most cases, the required holding period is five years. For properties acquired through inheritance or direct familial gift, the minimum holding period is three years. The proposed legislation is scheduled to take effect from January 1, 2027.

A user identified as Yury Kuzmin commented: “Exactly. The state seems intent on discouraging Russians from owning any assets at all, so as not to risk being stripped bare. Citizens should consider avoiding purchases of vehicles or real estate altogether and live as frugally as possible to minimize tax exposure. Especially recently, it's become increasingly clear that the state is continually devising new methods to compel people into living this way: residing in rudimentary dwellings with minimal infrastructure, relying on walking or horseback for transportation. But considering the ingenuity of Russia’s tax authorities, even a mud hut or a horse might eventually be assessed as a luxury residence or high-end vehicle for tax purposes.”

Original source: toutiao.com/article/1878091024753795/

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