On June 23, 2025, the President of Russia issued a list of assignments for the government regarding adjustments to tax legislation.
Taxation of Non-Residents
The government has been assigned to submit proposals for improving the taxation procedure for persons who are not tax residents of the Russian Federation. This may affect the procedure for paying income tax and profits tax (including withholding tax), which is particularly relevant for foreign companies and citizens conducting activities in Russia. The assignments do not specify what exact changes are planned.
Adjustment of the Investment Tax Deduction
According to the assignments, the parameters of the federal investment tax deduction must be revised. In particular, the possibility of simultaneous application of the federal and regional investment tax deduction, as well as the expansion of the list of economic activities to which this mechanism may apply, are being considered.
Taxation of Self-Employed Individuals
The government has been instructed to assess the effectiveness of the experiment on the professional income tax (so-called self-employment tax), including cases where employers use this regime for tax optimization. Based on the analysis, proposals for improving this regime must be developed. In our opinion, such changes will most likely include restrictions for companies that enter into contracts with self-employed individuals as an alternative to employment relationships.
Changes to the Simplified Taxation System (STS)
Since January 1, 2025, new STS rules have been in effect. Based on the analysis of the practical application of these new rules, additional adjustments are possible. In particular, for organizations and individual entrepreneurs engaged in trade, the maximum income threshold triggering the obligation to pay VAT may be reduced. A phased abandonment of the STS by this category of taxpayers is also possible.
We will continue to keep you informed about further changes in legislation so that you can prepare and adapt to new requirements in a timely manner. We would gladly provide you with professional support in tax planning and compliance with legislation amid the upcoming reforms.