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Duma Advances Tax Overhaul With Phased VAT Trigger and 30% Rate for 'Foreign Agents'

Third reading is set for November 20 following adoption of revisions to the budget-linked tax package.

Overview

  • Lawmakers approved a phased cut to the annual revenue threshold that triggers VAT for simplified and patent regimes to 20 million rubles in 2026, 15 million in 2027, and 10 million in 2028.
  • Individuals designated as foreign agents would face a uniform 30% personal income tax and lose key deductions, while organizations with that status or with foreign-agent ownership of 10% or more would be barred from certain tax preferences.
  • A new technological levy takes effect on September 1, 2026 for specified imported or domestically produced goods, with the Finance Ministry projecting about 218 billion rubles in federal revenue for 2026–2028.
  • Personal income tax treatment for residents of Eurasian Economic Union countries is aligned with Russian residents at the general 13%–22% range rather than the 30% rate applied to other foreign taxpayers.
  • Extensions and sectoral changes include continued relief on the calculation of tax penalties through 2026, a shift to a 7% tax on bookmakers’ gross gaming revenue, targeted VAT adjustments and software rights exemptions, and new tax breaks for families with children and participants in the special military operation.