Russia's Finance Ministry proposes 15% tax on mutual fund passive income

September 24, 2026 at 01:41 PM2 min

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Russia's Finance Ministry has proposed a 15% profit tax on passive income earned by mutual funds, according to a budget package submitted to the government on September 24, 2026. The measure aims to close a tax deferral loophole while allowing fund holders to offset the tax paid by the fund against their own liabilities. The proposal was not discussed with market participants, said Alexei Timofeev, president of the National Association of Securities Market Participants.

Key Facts

The Finance Ministry submitted the proposal as part of a budget package to the Russian government on September 24, 2026.
The proposed tax rate on passive income of mutual funds is 15%.
Fund holders would be able to offset the tax paid by the fund against their own tax liabilities.
Alexei Timofeev, president of NAUFOR, said the proposal was not discussed with market participants and suggested limiting it to funds for qualified investors.

Proposed Tax Mechanism

The Finance Ministry has proposed requiring mutual funds to pay a 15% profit tax on passive income they receive. Currently, mutual funds do not pay profit tax on such income; taxation occurs only when income is distributed to fund holders. The ministry said this allows the moment of tax payment to be deferred for a long period. Under the new rules, the tax paid by the fund would be credited against the tax obligations of the fund holders.

Rationale and Market Reaction

The Finance Ministry estimates that the current procedure creates conditions for tax optimization. In particular, ownership of various assets can be structured through mutual funds, allowing tax liabilities to be postponed. The proposed changes are intended to eliminate this possibility while preserving the offset for fund holders. Alexei Timofeev, president of NAUFOR, said the proposals were not discussed with market participants. Timofeev suggested that the measure should be limited to mutual funds for qualified investors.