The Russian State Duma approves raising personal income tax to 30% for those classified as ‘foreign agents’

20.11.2025

Article published on the ASI website

The State Duma has passed, in its third and final reading, a law raising the personal income tax (PIT) rate to 30% for individuals and organisations designated as ‘foreign agents’ in Russia. Speaker of the lower house of parliament, Vyacheslav Volodin, announced this on his Telegram channel. “Those who have betrayed our country should not receive tax benefits. They will pay higher taxes into the state budget,” he wrote.

According to the document drafted by the Ministry of Finance, ‘foreign agents’, in addition to facing the increased PIT rate, will lose the right to tax benefits and deductions. Specifically, they will no longer be able to use the exemption from tax on income from the sale of property owned for more than three years, nor will they be eligible for investment-related deductions. Organisations with this status, as well as companies in which ‘foreign agents’ hold a stake of over 10%, will not be able to use reduced profit tax rates, or the right to exemption from taxation on gratuitously received property.

As of 1 January 2025, Russia has had a progressive personal income tax scale, under which the standard tax rate ranges from 13% to 22%, depending on income level. The 30% rate had previously applied only to non-residents.

The Ministry of Finance proposed the bill to increase PIT for ‘foreign agents’ at the end of September. In its explanatory note, the Ministry emphasised that the initiative was aimed at increasing federal budget revenues. According to the Ministry, the federal budget deficit is expected to reach 5.73 trillion roubles by the end of this year.

Source: https://www.moscowtimes.ru/2025/11/20/gosduma-odobrila-povishenie-do30-ndfl-dlya-inoagentov-a180631