Russia proposes taxing investment income with wages under progressive PIT scale

From 2027, dividends, deposit interest and income from property sales could be included in a combined progressive personal income tax base. The measure remains a proposal, not a rule in force.

The Finance Ministry has proposed combining some passive income with employment income when calculating personal income tax. Under the parameters of the draft tax policy for 2027–2029, dividends, deposit interest, securities income and proceeds from property sales could be taxed under a combined rate schedule of 13% to 22%. Separate rates of 13% to 15% currently apply to some investment income.

Tax consultant Linda Karkulite said on RBC Radio that under the proposed change these earnings would be added together and taxed across five brackets. The proposal concerns income received from 2027 and still requires legislative consideration.

According to the expert, for an apartment sale with taxable proceeds of 10 million rubles, the tax difference under the 2026 and 2027 rules could be 150,000 rubles if the amendments are adopted as presented. The final amount would depend on the enacted text and the rates applicable to each taxpayer.

The obligation to file a 3-NDFL return is expected to remain when income is received from an individual or a foreign company, or when a tax agent has not withheld tax. Returns are due by April 30, and tax is payable by July 15 of the following year. Existing benefits for long-term ownership and type-3 individual investment accounts, known as IIS-3, are set to remain.

Karkulite also pointed to a separate rule for non-residents: when selling real estate, they cannot deduct the cost of acquiring the property from taxable proceeds. Taxpayers should rely on the law as adopted and their individual circumstances, rather than on draft parameters.