On 30 September 2026, the Ministry of Finance of Russia (MinFin) submitted a package of amendments to the Tax Code as part of the federal budget bill for 2027–2029. The proposed changes aim to enhance budget revenue stability amid ongoing geopolitical and economic pressures. Key measures include: (1) increasing the statutory corporate profit tax rate from 20% to 22% for large enterprises with annual revenue exceeding RUB 2 billion, effective 1 January 2027; (2) introducing a minimum tax on foreign-controlled companies aligned with OECD Pillar Two Global Anti-Base Erosion (GloBE) rules; (3) adjusting VAT exemption thresholds for small businesses; and (4) modifying mineral extraction tax (MET) formulas for new oil fields. The Ministry estimates these changes will yield an additional RUB 1.3 trillion annually by 2029.
Key Takeaways
- Corporate Tax Rate Hike: The 2-percentage-point increase targets large taxpayers and includes anti-avoidance provisions to prevent artificial fragmentation of business groups.
- Pillar Two Implementation: Russia commits to the OECD global minimum tax framework, introducing a Top-up Tax on multinational groups with effective tax rates below 15%.
- MET Reform for New Fields: Revised coefficients aim to stimulate exploration in hard-to-recover reserves while securing budget share from high-margin projects.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement