The budget proposals include a standard VAT rate hike from 20% to 22%, and the simplified VAT threshold will drop from RUB 60 million to RUB 10 million, amongst others.

Russia’s Ministry of Finance has submitted a series of draft laws to the government on 24 September 2025, which include amendments to the 2025 budget law, the draft federal budget for 2026 and the planning period of 2027 and 2028, as well as draft laws introducing specific changes to the budget and tax codes.

The proposed amendments to the tax code include:

Corporate taxes

  • A 5% gambling tax will be applied to bets accepted by bookmakers, alongside a 25% corporate income tax on bookmaker profits.
  • The Federal Investment Tax Deduction (FITD) will be extended to group companies across all industries. This benefit will be available to any individual in the same group as the taxpayer who made the capital investment, regardless of the industry in which they operate.

VAT

  • The standard VAT rate will be increased from 20% to 22%,
  • The reduced VAT of 10% on essential goods such as food, medicines, and children’s products will remain unchanged.
  • The VAT threshold for simplified tax regime taxpayers has been lowered from RUB 60 million to RUB 10 million.

Other measures

  • Uniform contribution rates will apply across sectors such as trade, construction, and mining:
    • 30% up to the maximum base
    • 15% above the maximum base
  • Reduced insurance premium rates will continue for priority SME sectors, including manufacturing, transportation, and electronics.
  • From 1 January 2026, employers must calculate social insurance contributions for managers at no less than the minimum wage to prevent tax evasion through underreported salaries.

If approved, the proposed tax code amendments will take effect on 1 January 2026.