Income Boost Attributed to NDFL Growth Scrutinized by FNS in 2024
Hear Ya! Here's an update on the revenue boost from Non-Dividend Income (NDF) taxes in Russia, as hit by the headlines.
Last year, those earning over 5 million rubles annually paid taxes on labor income, dividends, and profits of controlled foreign companies at a rate of 15%. A hefty 2 percentage points went to the federal budget.
But guess what? The NDF income for 2024 surpassed the 2023 figure by a whopping 29%! Citizens with an annual income of over 5 million rubles contributed a staggering 159.5 billion rubles to this extra income, according to Vedomosti. The total receipts, you ask? Well, they were a whopping 19.5% higher than the 181 billion rubles forecasted by the Ministry of Finance.
Now, where did most of this extra dough come from? You're right, enlightened one, it was Moscow. The city single-handedly contributed around 49% of the federal budget with 110 billion rubles!
In total, an impressive 56.3 trillion rubles were collected for the Russian budget system in 2024, with a notable increase of 9.5 trillion rubles compared to 2023. Breaking it down, Vedomosti tells us that 32.8 trillion rubles were non-oil and gas revenues, followed by 12.6 trillion in mineral extraction tax, 8.1 trillion in profit tax, and 8.4 trillion in NDF.
Oh, and don't forget about the progressive NDF tax scale that's been in play since 2025! It replaced the previous two-step system of 13% and 15% for incomes over 5 million rubles per year. The good folks at the Ministry of Finance think this new rate structure will bring in an additional 533 billion rubles for the budget in 2025.
Here's a rundown of the updated rate system:- 13% for incomes not exceeding 2.4 million rubles per year- 15% for incomes from 2.4 million to 5 million rubles- 18% for incomes from 5 million to 20 million rubles- 20% for incomes from 20 million to 50 million rubles- 22% for incomes over 50 million rubles
But remember, these rates might have recently been updated. To get the most current information, I suggest checking out the latest reports from the Russian Ministry of Finance or Federal Tax Service.
Stay informed and keep those brains whirring, folks! To get more news on the go, follow our Telegram channel at @expert_mag.
- The Non-Dividend Income (NDFL) taxes collected in Russia in 2024 exceeded the 2023 figure by 29%, with citizens earning over 5 million rubles annually contributing a significant 159.5 billion rubles.
- The city of Moscow alone contributed around 49% of the federal budget with 110 billion rubles from NDFL taxes in 2024.
- The total receipts for the Russian budget system in 2024 were 56.3 trillion rubles, with NDFL taxes making up 8.4 trillion rubles.
- The progressive NDFL tax scale has been in effect since 2025, replacing the previous two-step system of 13% and 15% for incomes over 5 million rubles per year.
- The Ministry of Finance anticipates that the new NDFL tax rate structure will bring in an additional 533 billion rubles for the budget in 2025.
