NDFL (Налог на доходы физических лиц, Personal Income Tax) is the tax levied on virtually all income in Russia, including investment returns. From 2025, Federal Law 176-FZ (July 2024) introduced a progressive scale with up to five brackets. For investors, the most relevant point is that capital income follows a simplified scale that differs from the one applied to wages.
Investment income tax base (capital gains, dividends, interest, coupons) — simplified scale:
- 13% on annual investment income up to 2.400.000 ₽. This threshold was lowered from the previous 5.000.000 ₽ under the 2025 reform.
- 15% on the portion above 2.400.000 ₽. For capital income, this is the maximum rate regardless of the total amount — the scale is capped at 15%.
- 30% for non-resident taxpayers: those who spent fewer than 183 days in Russia during the calendar year (EAEU citizens are excluded).
Labour income tax base (salary, professional fees) — general 2025 scale:
- 13% up to 2.400.000 ₽ per year.
- 15% from 2.400.001 ₽ to 5.000.000 ₽.
- 18% from 5.000.001 ₽ to 20.000.000 ₽.
- 20% from 20.000.001 ₽ to 50.000.000 ₽.
- 22% on the portion above 50.000.000 ₽.
Investment income (capital gains, dividends, interest, coupons) is capped at 15% under NDFL regardless of amount. The 18%, 20%, and 22% brackets apply only to labour income. An investor earning 10.000.000 ₽ in dividends would pay 15%, while someone with that same amount as salary would pay 18% on the relevant portion.
Russian brokers and financial institutions withhold NDFL automatically at source for domestic assets, which considerably simplifies the tax process for most investors operating exclusively through Russian brokers.