Russia’s 2026 tax reforms raise VAT, introduce a 15% minimum top-up tax and expand rules for digital assets and corporate taxation.
Russia has enacted a series of tax reforms for 2026 under Federal Law No. 425-FZ of 28 November 2025, introducing changes across VAT, corporate taxation, and digital asset regulation.
The reforms took effect on 1 January 2026.
The standard VAT rate has risen from 20% to 22%, while the reduced 10% rate remains for essential goods, including food, medicines, and children’s products. Software continues to benefit from VAT exemption. The threshold for small taxpayers under the simplified tax regime will fall to RUB 20 million in 2026, RUB 15 million in 2027, and RUB 10 million from 2028.
A 15% minimum tax (top-up tax) applies to Russian constituent entities of multinational groups with consolidated annual revenue exceeding EUR 750 million if the effective tax rate falls below 15%. Conditions for controlled foreign company (CFC) exemptions now require a minimum 15% tax rate in the CFC jurisdiction. Transfer pricing rules classify transactions with residents of jurisdictions taxing income at 15% or less as controlled.
Special rules for calculating interest penalties have been extended through 2026. Delays up to 30 calendar days incur a penalty equal to 1/300 of the key rate per day. Delays from day 31 to 90 incur 1/150 of the key rate; thereafter, the penalty reverts to 1/300 per day.
IT companies will face an increased social security contribution rate of 15% on income up to the maximum contribution base, with 7.6% applied to any excess. The limit on the offset of carried forward losses, capped at 50% of taxable income per year, has been extended to 31 December 2030.
The reforms also include a new technological levy on importers and manufacturers of electronic components and products, set to take effect on 1 September 2026, with rates and scope to be defined by the government.
Additional updates to the Tax Code address excise rates on alcohol, tobacco, and motor vehicles, with staged increases through 2028. Legal definitions for seasonal production have been clarified, and the classification of taxable assets has expanded to include digital currencies and rights on investment platforms. The changes also modernise administrative procedures, including debt collection, electronic communication between taxpayers and authorities, and international aircraft leasing agreements.
Collectively, these measures aim to strengthen Russia’s fiscal framework, improve compliance, and extend oversight into emerging digital financial markets.
