A bill to change the VAT rate from 20 to 22 percent and other amendments to the Tax Code of the Russian Federation has been submitted to the State Duma

On September 29, 2025, Federal Law No. 1026190-8 “On Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation” was submitted to the State Duma for consideration.

This bill contains amendments aimed at improving tax administration, including the application of the Unified Tax on Imputed Income, the extension of the tax monitoring system to a wider range of taxpayers by removing the requirement to meet three established criteria, clarification of VAT taxation parameters (including a change in the VAT rate), excise taxes (in terms of indexing rates to the inflation rate), personal income tax, income tax, mineral extraction tax, property taxes, insurance contributions (contribution rates for IT organizations are clarified), etc.

The draft law proposes, in particular, the following changes:

• to increase the VAT rate from 20% to 22% (subparagraph “b” of paragraph 7 of Article 2 of the draft);
• reduce the maximum income threshold for the simplified taxation system from RUB 60 million to RUB 10 million, above which VAT must be paid (clause 1 of Article 2 of the draft) in order to prevent fragmentation schemes;
• establish that if the last day for paying tax falls on a non-working day, the deadline is moved to the previous working day (subparagraph “b” of paragraph 2 of Article 1 of the draft);
• extend the validity of the rule limiting the reduction of the current period’s income tax base for losses from previous years until 2030 (clause 48 of Article 2 of the draft);
• Expand the scope of tax monitoring. Candidates will need to meet one of the criteria (revenue, assets, taxes paid), rather than all three as is currently the case (subparagraph “a” of paragraph 43 of Article 1 of the draft);
• expand the rules on excluding from the ENS balance the amount specified in the tax authority’s decision to hold (refuse to hold) a person liable, if the court adopts preliminary protection measures;
• optimize the number of notifications sent by taxpayers regarding calculated tax amounts, advance tax payments, fees, insurance contributions by canceling their submission for property taxes, as well as by canceling the obligation to submit them for personal income tax and insurance contributions for those periods for which the payer has already submitted such a notification with the amounts of personal income tax and insurance contributions planned to be paid (transferred) during these periods;
• switch to the use of electronic bank guarantees (eliminate the possibility of submitting a paper bank guarantee when applying for a deferral/installment plan);
• Increase the single reduced insurance contribution rate for IT organizations to 15 percent from 2026 on amounts within the established single maximum base for calculating insurance contributions (EPVB) while maintaining a single reduced insurance contribution rate of 7.6 percent on amounts exceeding the EPVB;
• exclude the possibility of applying insurance contribution benefits for all SMEs regardless of the type of activity carried out, while maintaining a reduced insurance contribution rate only for business entities in priority sectors, according to the list of activities determined by the Government of the Russian Federation;
• clarify that only income from the main base calculated on a cumulative basis from the beginning of the tax period is taken into account for the standard personal income tax deduction for children (clause 32 of Article 2 of the draft).

Among other things, the provisions of the draft law provide for additional support measures for certain categories of citizens and their family members.
In addition, according to the explanatory note, in order to prevent erroneous broad interpretation of clause 2 of Article 309 of the Code and to exclude the application of withholding tax exemption to income that is taxable income under the provisions of clause 1 of Article 309 of the Code, for example, income from international transportation, technical changes are proposed that do not alter the current legal regulation, which is that all income listed in paragraph 1 of Article 309 of the Code is unconditionally taxable at source and is not subject to the exemption provided for in paragraph 2 of Article 309 of the Code.

Link: https://sozd.duma.gov.ru/bill/1026190-8
Draft law № 1026190-8