The State Duma is considering a large-scale bill from the Ministry of Finance. The proposed changes will significantly tighten the tax conditions for small and medium-sized businesses: many companies will lose the right to special tax regimes (SST, PST) and become VAT payers, and the burden on insurance premiums will increase. Businesses should start preparing for possible innovations in advance. It is planned that the new rules will come into force on January 1, 2026.

The bill is currently under discussion, and its provisions may be adjusted. The first reading took place on October 22, 2025, where the deputies supported the changes, but called for a smoother transition to the new limits.

Now let’s take a closer look at the main points of the bill.

1. Value added tax (VAT)

Increase in the basic rate. The basic VAT rate may rise from 20% to 22%. Preferential rates will remain in place.

Reduction of the limit for “simplifiers”. For companies on the simplified system of taxation (SST), the threshold for mandatory VAT payment is planned to be sharply reduced from 60 million to 10 million rubles in annual income. This means that thousands of small businesses will be forced to become VAT payers, keep complex records and submit quarterly reports.

VAT for Russian software. The VAT exemption for Russian software from the unified register is canceled. The provision of remote access to such software will also be taxed.

2. Patent system of taxation (PST)

Lowering the income limit. The annual income limit for patent application is also reduced from 60 million to 10 million rubles. Exceeding the limit will oblige the sole proprietor to switch to the SST or GST.

Patent cancellation for some industries. The patent will be revoked for:

• Cargo transportation;
• Retail through fixed points (both with and without sales floors).
• The patent will remain valid only for delivery and door-to-door sales.

New cost recalculation rules. With a decrease in physical indicators (number of employees, cars, sales floor area), it will be possible not to close the patent, but simply to apply for a reduction in its cost within 10 days.

3. Simplified system of taxation (SST)

The limit for VAT. As already mentioned, the limit for VAT exemption for “simplifiers” is reduced to 10 million rubles.

Selection of the VAT rate. Businesses that exceed the limit will have to choose the VAT rate:

• Reduced (5% or 7%) — without the right to tax deduction.
• Unified (0%, 10%, 22%) — with the right of deduction.

Reduction of regional benefits. The authorities of the regions will be able to set reduced tax rates only for activities approved by the government. This means that many regional benefits (for example, the 1% rate in Dagestan and Kalmykia) may be canceled.

4. Insurance premiums

Individual entrepreneur contributions to the UST. “Income minus expenses”. The rule is officially fixed that 1% of additional contributions from incomes over 300 thousand rubles is calculated from the difference between income and expenses. At the same time, the individual entrepreneur’s insurance premiums themselves cannot be taken into account in the costs when calculating this 1%.

Cancellation of preferential contributions for SMEs. The preferential rate of 15% for salaries over 1.5 minimum wage will remain only for certain industries (IT, manufacturing, etc.) approved by the government. For the rest, the rate will return to 30%.

A new base for directors. If the director receives a salary below the minimum wage, contributions will need to be paid from an amount not lower than the federal minimum wage.

5. Miscellaneous changes

Trade fee. Due to the cancellation of the retail patent, many entrepreneurs will be required to pay a trade fee.

Tax payment deadlines. The deadline for tax payment, which falls on a day off, will be postponed not to the next working day, but to the previous one.

Raising the minimum wage. Starting from January 1, 2026, the federal minimum wage will increase to 27,093 rubles.

Income (Profits) tax. It is planned that the temporary restriction, according to which the income tax base can be reduced by no more than 50% for losses of previous years, will be extended until December 31, 2030. It was originally planned that such a restriction would be lifted on December 31, 2026. Thus, by the end of 2030, taxpayers will be able to reduce their taxable profits by losses of previous years, but only within 50% of the current tax base.

Implementation of Pillar 2. An analogue of Pillar 2 is being introduced in Russia, aimed at ensuring a minimum tax of 15% for international groups of companies (IGC) with annual revenues of 750 million euros or more. The new mechanism, which will take effect in 2026, is designed to prevent the payment of Russian taxes in foreign jurisdictions if the effective tax rate in Russia is below 15%. It provides for the payment of an additional tax to the budget of the Russian Federation if the effective rate for Russian participants of the IGC is below 15%. The purpose of the changes is to equalize tax conditions and prevent the withdrawal of profits to low–tax jurisdictions.

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