Russia plans higher taxes on passive income and foreign online purchases as budget deficit continues

Russia’s Finance Ministry has proposed a 2027 budget that would impose higher taxes on passive income, such as dividends, interest on deposits, property sales, and securities transactions. The proposed rates range from 13% to 22%, up from the current 13-15%. The tax would be standardized, affecting only about 4 million people. The budget also includes a 22% VAT rate on cross-border e-commerce purchases, with online marketplaces acting as tax agents.

Personal-use goods sent from abroad by mail will have a customs fee of 100 rubles per parcel. Additionally, indexing insurance pensions will be taxed twice in 2027, with rates increasing in February and April. The budget projects a deficit of about 2% of GDP annually, and the Ministry of Finance has prioritized financing the country’s defense and security needs and social support for participants in the SVO.

The previous budget also ran a deficit and called for raising the base VAT rate by two percentage points.