Overview

• The Cabinet submitted the three-year federal budget to the State Duma on September 29 with a package of tax changes.
• The proposal lifts the standard VAT rate from 20% to 22% starting in 2026 while keeping a 10% rate for socially significant goods.
• The small-business VAT threshold would drop from 60 million to 10 million rubles to deter business splitting, with simplified-tax payers able to choose alternative 5% or 7% levies without input credits.
• Bookmakers would face a new regime of 5% on accepted stakes plus profit tax at 25%, which the ministry estimates could bring about 300 billion rubles from the gaming levy and 17 billion rubles from profit tax over three years.
• The package also expands the federal investment tax deduction by allowing its transfer to any company within a group, and officials say the measures reduce borrowing needs and limit inflation pressure.