Taxes rose, tax breaks were trimmed: what awaits businesses from January 1

      As of January 1, 2026, changes to tax legislation in Russia came into effect that affect both large and small businesses. The amendments were approved in 2025 and sparked active discussion in the business community.

      The main innovation is an increase in the VAT rate. The standard tax rose from 20% to 22%. At the same time, the reduced 10% rate for socially significant goods, including food, medicines and children’s goods, was retained. The Ministry of Finance expects the VAT increase to bring about 2.3 trillion rubles to the budget as early as 2026.

      The turnover threshold at which companies and individual entrepreneurs are required to pay VAT will also begin to be gradually reduced. In 2026 it will be 20 million rubles, in 2027 — 15 million, and in 2028 it will fall to 10 million rubles. Similar limits are being introduced for users of the patent taxation system, reports Vedomosti.

      Reliefs are provided for small businesses: entrepreneurs will be able to opt out of reduced VAT rates earlier than the established deadline, and will also receive a moratorium on fines for the first violation of the new rules.

      Significant changes also await taxpayers under the simplified tax system with the “income minus expenses” base. From 2026 they will be able to account for all actually incurred expenses, not only those previously included in the closed list of the Tax Code — similar to corporate profit tax.

      In addition, the rules for paying social insurance contributions have been adjusted. For most SMEs a rate of 30% will apply up to the maximum base and 15% above it. For a number of sectors, including agriculture, manufacturing, science, education, culture and tourism, the reduced 15% rate will be retained without base limits.

      Changes also affected the federal investment deduction — it can now be applied by companies belonging to the same group as the investor, regardless of industry.

      A separate set of amendments concerns bookmakers. A unified procedure for calculating the gambling business tax is being introduced for them — 7% on the difference between stakes and winnings, plus the standard corporate profit tax of 25%. The Ministry of Finance expects this to increase budget revenues by up to 60 billion rubles a year.