The draft prepared for Russia’s 2027 federal budget includes new tax proposals to finance rising military spending. The text submitted by the Finance Ministry to the State Duma envisages additional financial burdens on passive income, cross-border online shopping and companies benefiting from high commodity prices.
Tax rate on passive income could rise to 22%
A progressive tax system ranging from 13% to 22% has been proposed for income from bank deposit interest, stock dividends, real estate sales and securities transactions. These types of income are currently taxed at rates ranging from 13% to 15%.
According to the Finance Ministry’s estimates, the measure would cover approximately 4 million high-income individuals. Military personnel are planned to be exempt from the tax increase.
Corporate profits and parcels included in the draft
A 35% tax is proposed on dividend payments sent to “C-type” bank accounts held by non-residents. Passive earnings of investment funds would also be taxed at 15%, while the regulation allowing funds to defer profit tax indefinitely is to be abolished.
The draft also includes a 22% value-added tax on cross-border online retail purchases. The proposals include a fixed customs fee of 100 rubles for international parcels worth less than 200 euros.
Excess profits earned by mining and metallurgy companies from the recent rise in global commodity prices are planned to be taxed at a rate of 30%.
Deficit forecast at 2% for 2027
The government has said it will maintain the priority of defense and security while defending the tax increases. The Finance Ministry said the draft aims to meet social obligations, support defense and security, assist participants in the special military operation and their families, and advance technological leadership.
The 2027 budget draft, based on an assumed benchmark oil price of $50 per barrel, projects a deficit equivalent to about 2% of gross domestic product. Despite the government’s earlier tax increases during the year, fiscal pressure on the federal budget has not eased, and the deficit is expected to reach 3% of gross domestic product by the end of 2026.
In Russia, the Finance Ministry is required to submit its federal budget draft for the upcoming fiscal year to the State Duma by October 1 at the latest each year. The Kremlin did not comment on the budget draft.
