August 20, 2025
Finance

Russia’s Finance Ministry proposes hiking income tax rate for ‘foreign agents’ — Meduza


Russia’s Finance Ministry has drafted legislation that would set the personal income tax rate for “foreign agents” at 30 percent, Vedomosti reported, citing two sources.

The rate would apply for the entire year in which a person was designated a “foreign agent,” even if it was just for one day.

Currently, a 30 percent income tax applies to non-residents, defined as those who spend more time abroad than in Russia over the course of a year. The ministry’s proposal, Vedomosti noted, would in effect treat “foreign agents” the same as tax non-residents.

An explanatory note attached to the bill says the measure would boost state revenues, according to Vedomosti. No other reasons were given for the higher tax rate.

The proposal has been endorsed by the government’s commission on legislative activity. If adopted during the State Duma’s fall session, it would take effect with the next tax year, beginning January 1, 2026.

Russia introduced a progressive income tax scale on January 1, 2025, with rates ranging from 13 to 22 percent. Non-residents pay 30 percent on all Russian-sourced income, with one exception: salaries from official employment with a Russian company are taxed at the resident rate, even if the work is done remotely from abroad.



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