Golden Parachutes Will Be Taxed

In 2012 golden parachutes will be taxed by 13% income tax. So far severance payments to top management - general directors, executive directors, their deputies and the chief accountant – have been exempt of taxation. Today the Council of Federation, the upper house of the Russian Parliament, has approved the bill closing this loophole. From the 1st of January, any pay above three months average salary to a leaving employee will be subject to personal income tax.