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Delovaya Rossiya has proposed more than 50 economic reforms, including ending or narrowing tax arrangements used by small businesses and sole proprietors. The proposals have been sent to government agencies, but the Finance Ministry says they need further study; no adoption decision has been reported.
Delovaya Rossiya, one of Russia’s largest business associations, has proposed more than 50 economic reforms that would remove or restrict several tax arrangements used by small businesses and sole proprietors. The measures, reported by RBC and summarized by Meduza, include ending two simplified tax options as early as 2027, imposing a common VAT threshold across special tax regimes, and abolishing the patent tax system; officials have not decided whether to adopt them.
The association’s package would eliminate the “income” option under Russia’s simplified tax system and the automated simplified tax system from 2027. Under the current options, businesses pay tax on gross revenue at rates of 6% under USN and 8% under AvtoUSN. Yevgeniya Memruk, head of the Union of Accountants and Tax Consultants, told RBC that these arrangements are often used by businesses with high margins and annual revenue of 10 million to 20 million rubles.
Memruk warned that shifting such businesses to other regimes could leave them with a tax base at least 2.5 times larger, potentially making some operations unprofitable and leading owners to close. That is an expert assessment, not a reported government impact estimate. Russia has nearly 3.5 million entrepreneurs using the simplified tax system, according to the source report.
Another proposal would require businesses under all special tax regimes, including AvtoUSN, to pay VAT if their revenue exceeded 20 million rubles in the previous calendar year. AvtoUSN currently permits businesses to remain outside VAT up to 60 million rubles. The package would also remove regional governments’ discretion to lower USN rates and abolish the patent tax system, under which sole proprietors pay a fixed tax based on assumed income. Nearly 1.5 million entrepreneurs use that system, according to the report.
Tax Changes Could Reach Millions
The proposals could alter operating costs and tax planning for a large number of Russian entrepreneurs. A uniform 20 million-ruble VAT threshold would remove the higher VAT exemption currently available to AvtoUSN users, while ending the “income” options could change how some small firms calculate their tax liability. The effects would vary by business size, margin, regime and location; the source material does not provide a government estimate of the total cost to businesses.
Removing regional authority to lower tax rates could also affect how regions compete to attract companies. Memruk told RBC that abolishing the patent system would affect entrepreneurs in fields including trucking, independent retail and personal services. She also said its removal could reduce regional budget revenue. Those are forecasts from an expert cited by RBC, not confirmed outcomes.
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The Tax Regimes Under Review
USN, the simplified tax system, offers different ways to calculate tax, including a tax on total income and a tax on income minus expenses. Regional authorities can currently reduce rates: under the income option, from 6% to as low as 1%; under income minus expenses, from 15% to as low as 5%. Delovaya Rossiya’s proposal would remove the regional discretion to set lower rates.
The patent tax system lets sole proprietors pay a fixed amount calculated against assumed income, so higher actual earnings do not automatically increase their tax bill. Its eligibility threshold has already been reduced: the source report says it is 20 million rubles in 2026 and is due to fall to 10 million by 2028. The association’s proposal is to abolish the system, rather than only change those thresholds.
The report also describes proposals to require social insurance contributions from people whose income mainly comes from interest and dividends, and to tax gifts and inheritances. Shares in publicly traded companies would be exempt from the proposed gift and inheritance taxes. Delovaya Rossiya argues that special regimes can be abused by businesses that split operations or misrepresent their status to reduce tax bills. Its chairman, Alexey Repik, said companies posing as small businesses distort competition. Experts cited by RBC acknowledge abuse occurs but warn that broad changes would affect legitimate users too.
“Companies posing as small businesses distort market competition.”
— Alexey Repik, chairman of Delovaya Rossiya
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No Decision on Adoption Yet
The proposals remain a reform package under review, not enacted policy. The source report says they were sent to relevant government agencies and that the Finance Ministry had considered them, but the ministry told RBC they still require further study. It is not clear which proposals, if any, the government will support, whether they would be changed, or when a decision might be made.
The report says Delovaya Rossiya has previously seen proposals become law, but that history does not establish what will happen to this package. The source material also does not quantify how many firms would face higher costs under each proposed measure or set out a full fiscal estimate.
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Government Review and October Forum
Delovaya Rossiya is scheduled to present its reform program at a forum on October 15, which Vladimir Putin is also expected to attend, according to the source report. The year is not specified in the material provided. Government agencies, including the Finance Ministry, are reviewing the proposals; no timetable for a decision has been reported.
The next confirmed developments to watch are the association’s forum presentation and any public response from the government. Until authorities announce a decision or publish draft legislation, the proposed tax changes should be treated as proposals rather than settled rules for businesses.
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Key Questions
Has Russia approved the proposed tax changes?
No approval has been reported. Delovaya Rossiya submitted the proposals for government review, and the Finance Ministry told RBC they require further study.
Which small-business tax arrangements could change?
The package proposes ending the “income” options under USN and AvtoUSN, setting a common VAT threshold across special regimes, removing regional discretion to lower USN rates, and abolishing the patent tax system.
When would the proposed changes take effect?
The association proposes ending the USN and AvtoUSN income options and setting a common VAT threshold from 2027. The source material does not give an implementation date for every proposal, and none has been approved.
Why does Delovaya Rossiya support changes to the regimes?
The association says some businesses exploit special regimes by splitting operations or misrepresenting their status to lower taxes. Experts cited by RBC say abuse is a real issue but warn that broad changes could also affect businesses using the regimes in good faith.
How many entrepreneurs could be affected?
The source report says nearly 3.5 million entrepreneurs use the simplified tax system and nearly 1.5 million use the patent system. Those figures describe users of the systems; they do not establish how many would face higher taxes if the proposals were adopted.
Source: rss
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