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Russia’s Finance Ministry Outlines Tax Reforms, Proposes VAT Hike in 2026 Budget

  • VAT Changes: Russia proposes raising the standard VAT rate from 20% to 22% from January 2026, while retaining the 10% reduced rate. The simplified VAT threshold will drop sharply from RUB 60 million to RUB 10 million.

  • Corporate Tax Reforms: Planned measures include a 25% corporate income tax on bookmaker profits, a new 5% gambling tax on accepted bets, and expansion of the Federal Investment Tax Deduction to all group companies across industries.

  • Other Measures: Uniform social contribution rates of 30% up to a maximum base and 15% thereafter will apply. Reduced SME insurance rates continue, and employers must calculate managers’ contributions at least at minimum wage levels.

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