Deputy Head of the Federal Tax Service, Andrey Konkov, presented at the All-Russian Tax Conference on 25 August 2026 the upcoming expansion of investment tax deductions under Articles 286.1 and 286.2 of the Tax Code. The federal deduction for capital expenditures on new fixed assets will increase from 10% to 15% for assets placed in service after 1 January 2027, with an enhanced 20% rate for high-tech and green technology equipment. Simultaneously, regions are granted the authority to introduce additional regional investment deductions up to 5% of eligible costs, provided they adopt corresponding regional laws by 31 December 2026. The FTS will publish a methodological guide on calculation and documentation requirements by 30 September 2026.
Key Takeaways
- Federal Rate Hike: The base federal investment deduction rises to 15% (20% for priority sectors), effectively reducing the profit tax burden on qualifying capital projects.
- Regional Top-Up: Regions may layer an extra deduction up to 5%, creating a combined deduction of up to 25% for strategic investments in participating regions.
- Documentation Requirements: Taxpayers must maintain separate analytical accounting for each investment project, including contracts, acceptance acts, and proof of asset classification under OKVED 2.
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.
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