Russian President Vladimir Putin signed a law on the priority transfer of personal income tax to regional and local budgets. The document is published on the portal of legal information.
The law amends the institution of a single tax account and is aimed at increasing the stability of local budgets and ensuring uninterrupted and uniform financing of their expenses.
As noted in the explanatory note, in most regions the basis of consolidated budgets is personal income tax. However, due to the introduction of a single deadline for paying taxes and the diversion of personal income tax to pay off other arrears, there is an uneven flow of funds to regional and local budgets and their imbalance.
According to the law, in order to stabilize revenues, money will be credited to regional and local budgets on a priority basis. At the same time, if there is a positive balance of the single tax account, the personal income tax already withheld will be automatically credited towards the fulfillment of tax transfer obligations.
Earlier it was reported that the regions could receive 4 trillion rubles ahead of schedule. According to the forecasts of the tax authorities, the volume of such “early” payments to the country’s budget system may amount to more than 30 percent of the total revenue.
• Deceived equity holders will be exempted from personal income tax on received apartments • Material support for students will be exempted from taxes