Changes to the Russian Tax System: New Rules for Business
In November 2025, Russian President Vladimir Putin signed an important law that introduces significant changes to the country's tax system. These innovations affect both large companies and representatives of small and medium-sized businesses. The main goal of the changes is to adjust fiscal policy to current economic conditions.
One of the key points of the document is the increase in the Value Added Tax (VAT) rate from 20% to 22%. This decision directly affects the cost of goods and services, as VAT is built into the price of almost all products on the Russian market. Experts note that the increase in the tax burden may lead to price changes for end consumers.
In addition, the law affects the rules for small and medium-sized enterprises. Specifically, the income threshold for using the simplified taxation system (STS) has been lowered. This means that fewer companies will now be able to take advantage of preferential tax rates, which will require entrepreneurs to revise their financial models and reporting.
Despite the tightening of tax conditions, the president has instructed the government to develop measures to simplify administrative procedures for business. It is expected that reducing the bureaucratic burden should partially compensate for the tax increase and help entrepreneurs adapt to the new legislative requirements.
At the moment, the business community is studying the new rules in order to prepare for their entry into force. In the coming months, the government is expected to present specific support mechanisms that will help maintain the stability of small and medium-sized enterprises in Russia within these new economic realities.