Russia Considers Keeping Tax Exemption for Small Businesses Unchanged
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Russia’s Ministry of Economic Development is in discussions with business associations regarding the VAT exemption threshold for small and medium-sized enterprises and is taking their concerns into account, Deputy Economic Development Minister Tatyana Ilyushnikova said.»The tax discussion is indeed complicated and sensitive. We are currently talking with business associations about whether the threshold should remain unchanged and not be lowered further,» Ilyushnikova said during the plenary session «Small Business Transformation: A New Formula for SME Growth» at the SPIEF 2026 forum.
According to her, the ministry held a meeting with Alexander Kalinin, head of the business association Opora Russia, just a few days ago.
Earlier, Alexander Shokhin, president of the Russian Union of Industrialists and Entrepreneurs, suggested that the Finance Ministry may keep the VAT exemption threshold for small businesses at 20 million rubles [roughly $270,000] in 2027.
Comprehensive amendments to Russia’s Tax Code came into force on January 1. Among other measures, they provide for a gradual reduction of the revenue threshold under which small businesses are exempt from paying VAT: from 60 million rubles to 20 million rubles in 2026, to 15 million rubles in 2027, and to 10 million rubles in 2028.
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