On 25 April 2026, Federal Law No. 104-FZ came into force, amending the Tax Code of the Russian Federation to support small and medium-sized businesses. The law introduces several key support measures:

• Sole proprietors on the simplified tax system (STS) and the patent tax system (PTS) remain exempt from VAT in 2026 if their income exceeded the RUB 20,000,000 limit for 2025 because of interest on bank deposits and account balances;
• Sole proprietors who have lost the right to the PTS can deduct input VAT on goods and services not used under the PTS, and those who have moved from the STS to the general tax regime can reduce their income by the VAT on advances received earlier;
• Sole proprietors who combined the PTS with the general tax regime and exceeded the RUB 20,000,000 income limit in 2025 can switch to the STS from 1 January 2026, provided they notify the Federal Tax Service by 1 June 2026. Sole proprietors who combined the PTS and the STS may also change their STS tax base for the whole of 2026;
• When determining eligibility for reduced insurance contribution rates, SMEs can now add up income from their main and additional activities if those activities are on the Government's list.

We recommend analysing whether the law can be applied to optimise your tax burden. The C Cases team is ready to help prepare the necessary documents for submission to the Federal Tax Service.