On 28 October 2026, the FNS issued an official clarification (Letter No. BS-4-11/12345) explaining how the progressive personal income tax scale, introduced by Federal Law No. 389-FZ dated 29 July 2025, is reflected in the 2026 tax notifications for individuals. The progressive scale applies to annual income exceeding 5 million rubles, with marginal rates of 15% (5-10 million), 18% (10-20 million), 20% (20-50 million), and 22% (above 50 million). The letter details the algorithm used by the FNS to calculate the tax due on aggregated income from multiple sources (employment, civil law contracts, dividends, interest, capital gains) and how advance payments made by tax agents are credited. It also addresses the treatment of foreign tax credits under double taxation treaties in the progressive regime.
Key Takeaways
- Aggregated Income: The FNS automatically sums all taxable income reported by tax agents (employers, banks, brokers) to determine the applicable marginal rate; taxpayers do not need to self-aggregate.
- Advance Payment Credits: Tax withheld at source (13% or 15% for non-residents) is credited against the final progressive liability; any excess is refunded, any shortfall is payable by 15 July 2027.
- Foreign Tax Credit: Credits for taxes paid abroad are applied proportionally across the progressive brackets, preventing double taxation on high-income slices.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement