Russia has introduced several changes to its Tax Code, effective starting 1 January 2025, which includes changes to the corporate income tax rate, simplified tax regime and tourist tax.
The corporate income tax (CIT) rate has been raised from 20% to 25%.
The Simplified Tax Regime has also been updated. Companies with annual income up to RUB 450 million and depreciable assets under RUB 200 million will now qualify for this system. VAT will apply at 5% for income between RUB 60 million and RUB 250 million, and 7% for income between RUB 250 million and RUB 450 million.
Additionally, a new tourist tax – which has replaced the previous resort fee – for businesses and individual entrepreneurs offering temporary lodging services to individuals in hotels, motels, and other accommodation establishments has been introduced. The tax will be determined as a percentage of the cost of the accommodation services provided. Local municipalities will set the specific rate, and a minimum charge of RUB 100 per day will apply. However, the established rate may not exceed 1% in 2025, 2% in 2026, 3% in 2027, 4% in 2028 and 5% in 2029.
