• Tax reforms introduced in 2025 will continue into 2026.
  • Last year, a five-tier scale for personal income tax was implemented.
  • The profit tax rate was increased from 20% to 25%.
  • Small businesses on a simplified tax system with an annual income of 60 million rubles or more are now required to pay VAT.

Quick Summary

Tax reforms initiated in 2025 will continue into 2026. Last year, a five-tier scale for personal income tax was implemented. The profit tax rate was increased from 20% to 25%. Small businesses on a simplified tax system with an annual income of 60 million rubles or more are now required to pay VAT. These changes were driven by budgetary needs.

Overview of Continued Reforms

Tax reforms that began in 2025 will continue into the new year. The changes are driven by the needs of the state budget. These fiscal adjustments affect personal income tax, profit tax, and value-added tax for small businesses.

Personal Income Tax Changes

One of the major changes introduced last year was the implementation of a five-tier scale for personal income tax. This new structure replaced the previous system. It determines tax rates based on income levels.

Corporate Profit Tax Increase

The tax on corporate profits was also raised. It increased from 20% to 25%. This hike impacts companies calculating their liability on profits earned.

VAT Obligations for Small Business

Small businesses operating under a simplified tax system faced new requirements. Those with an annual income of 60 million rubles or higher are now obligated to pay VAT. This measure expands the tax base to include higher-earning small enterprises.

Conclusion

The fiscal landscape established in 2025 remains in effect for 2026. The government continues to rely on these measures to support budget requirements. Taxpayers must adhere to the five-tier income tax scale, the 25% profit tax rate, and the new VAT rules for qualifying small businesses.

Frequently Asked Questions

What tax changes were introduced in 2025?

A five-tier personal income tax scale was introduced, the profit tax was raised from 20% to 25%, and small businesses with an income of 60 million rubles were required to pay VAT.

Will these tax reforms continue in 2026?

Yes, the tax reforms that started in 2025 will continue into 2026.