Personal income tax up to 22% on deposits and dividends: what bill 617-9 changes for those leaving Russia

In brief

• Bill 617-9 was submitted by the government on 30 September 2026 as part of the 2027-2029 budget package. The first reading is planned for 29 October 2026.
• Passive income (dividends, interest, securities, sale of property, digital currency, CFC profit) is taxed on the general 13-22% scale. Today it has a separate base and two rates: 13% and 15%.
• Non-residents lose the special 15% rate on dividends and interest. The general rate of 30% applies.
• A 35% rate is introduced for dividends credited to type "C" accounts.
• The main changes are proposed from 1 January 2027. The text may change before the second reading.

What exactly is in the bill

Today a Russian individual has two tax baskets. The first holds salary and fees on a five-step scale from 13% to 22%. The second holds passive income: dividends, interest, sales of securities and property. The second basket has only two rates: 13% up to RUB 2.4 million a year and 15% above. Separate baskets mean dividends do not "stack" on top of salary and push you into a higher bracket.

The bill merges the baskets. Passive income enters the main base and is taxed on the same scale as salary. The list includes sale and gift of property, winnings, insurance payouts, dividends, securities transactions, deposit interest, mining and sale of digital currency, and profit of controlled foreign companies.

Banks become tax agents for deposits, and deductions on interest may be applied from 2027. According to the Ministry of Finance, the tax-free portion of deposit interest is kept.

What this means for you. If you have both salary and dividends, your tax will rise even without new rates: the income adds up, and part of it moves into the 18%, 20% and 22% brackets.

Non-residents: 30% instead of 15%

For those who have left, this is the key line of the bill. Today a non-resident pays 15% on dividends from Russian companies. The bill removes this special rate, and the general non-resident rate of 30% applies to dividends and deposit interest. The rate doubles.

Many expect to reduce it under a double tax treaty. But since 2023 Russia has suspended the main provisions of such treaties with a number of "unfriendly" countries. If you live in one of them, do not count on the treaty; count on 30%.

A separate line is 35% for dividends credited to type "C" accounts. Such accounts are opened for foreign holders from unfriendly countries, and money cannot be freely withdrawn from them. As a general rule this rate does not apply to Russians who left and became non-residents, but it applies directly to those with foreign citizenship whose payouts go to a "C" account.

What this means for you. From 2027, leaving and becoming a non-resident means paying twice as much on Russian dividends and interest as today. If your income rests on Russian securities, calculate this before choosing a country.

What it means in money

I calculated three typical situations on the bill's scale. One assumption: income adds up in a single base, with no deductions.

For a resident with salary and dividends the increase is moderate: about 1.5% of income. For someone living on capital it is more noticeable: on RUB 60 million of passive income the tax rises by RUB 2.65 million. For a non-resident the increase is twofold at any amount.

What it means for those leaving

I see three types of client for whom the bill changes the plan.

The first are those who leave but keep capital in Russian securities and deposits. The bill puts the question bluntly. A resident will pay up to 22% on the scale, a non-resident 30% flat. Neither option is cheaper than today. The sensible move is to review where the capital sits, not only where you live.

The second are owners of foreign companies. CFC profit is on the list, so with large retained profit a resident moves into the 20% and 22% brackets. How this works for Russians with a second passport I covered in the piece on CFCs and currency control. A passport by itself does not change tax status.

The third are those who have not yet decided whether to become non-resident. Status is counted in days: 183 days in Russia over 12 consecutive months, in detail in the analysis of the 183-day rule. If you plan to move in 2027, choose a country with a clear tax on your type of income and check whether its treaty with Russia is in force. Tax residence options are on the page tax residency.

What this means for you. From 2027, changing country without changing the structure of your capital may cost more than living in Russia. First the calculation, then the ticket.

What tax residence is and why it matters more than a passport is explained in the piece on tax residence, and for entrepreneurs in the analysis of residence for sole traders. How Russian tax relates to a second passport we showed using the example of taxes and Vanuatu citizenship.

Why I do not believe in a "temporary measure"

The Ministry of Finance explains the bill as fairness: the wealthy should pay on capital as much as on labour. The argument is clear, but look at the other half. Together with the scale for residents, the bill doubles the rate for non-residents and raises it to 35% on "C" accounts. That is no longer about fairness; it is about keeping capital from leaving with its owner.

Since 2021 this is the third step up: first 15% on income above RUB 5 million, from 2025 the five-step scale for salary, now passive income. I see no reason to think the scale will stop at 22%. Planning capital ten years ahead in such a system is possible only with a margin for the next step.

What to do before 1 January 2027

1. Calculate the tax for both statuses: resident and non-resident. Without this, the decision to move is made blind.
2. Check whether Russia has a treaty in force with your future country and which of its provisions are suspended.
3. If you hold a large block of Russian securities, decide before the end of 2026 whether to sell part at current rates. This is a decision for a tax adviser, not for the news.
4. CFC owners should recalculate how much profit stays in the company and how it affects the scale.
5. Watch the second reading. Thresholds and rates may change, and the calculation will need updating.

If you are considering a move, look at countries with a clear tax on capital: UAE residence and Cyprus permanent residence. For a back-up passport without changing residence there is Vanuatu citizenship, but it does not change taxes in Russia.

How to move to UAE taxation lawfully is covered in the article on UAE taxes for Russians, countries with tax benefits in the review of where a business owner can move, and double tax treaties using the example of Portugal. If part of your capital is in crypto, read the analysis of the P2P ban from 1 July 2027.

How your status will be determined in 2027

Whether you are resident is counted in days: a Russian tax resident is someone who has spent at least 183 days in the country over 12 consecutive months. Final status for the year is determined at year end, while the bank or broker withholding tax looks at your status on the payment date. So within one year it is entirely possible for the first payouts to be withheld at one rate and the tax then recalculated.

For those moving in 2027 this matters in two places. First, dividends in the first half of the year: if you are still resident on the payment date, tax is withheld on the scale, and if you become non-resident by year end, the difference is charged at 30%. Second, sales of securities: income from a deal counts in the year it closes, and your status for that year decides the rate.

What this means for you. Plan the date of your move together with payout and sale dates. A few weeks' difference can cost noticeable money.

What changes for deposits

Deposit interest is already taxed, but with a tax-free portion: RUB 1 million multiplied by the maximum key rate for the year. According to the Ministry of Finance, the bill keeps this relief. What changes is that interest joins the general scale together with salary and other income, and banks become tax agents and will withhold tax themselves.

For a large depositor this means interest may fall into the 18% and 20% brackets if, together with salary and dividends, income exceeds RUB 5 or 20 million. For a non-resident the key point is a 30% rate on interest instead of the preferential 15%. If you have left but keep money in Russian deposits, the tax on interest doubles.

What this means for you. From 2027 a non-resident's Russian deposit is one of the most tax-expensive ways to hold money. Factor this into your plan.

My conclusion

Bill 617-9 is not a "tax on the rich". It is a tax on those whose capital works in Russia, and twice that tax on those who have also left. For now it is a bill, and the figures may shift. But the direction is clear, and I do not advise waiting for the final text to start counting.

How this piece was prepared

This piece is based on bill 617-9 submitted by the government to the State Duma on 30 September 2026 (bill record on sozd.duma.gov.ru), explanations from the Ministry of Finance and the current provisions of the Tax Code. Calculations use the bill's scale without deductions and assume income adds up in a single base. The bill may change during consideration. It is not tax advice.