On April 25, 2026, Federal Law No. 104-FZ came into force, introducing amendments to the Tax Code of the Russian Federation and aimed at supporting small and medium-sized businesses. The law introduces several key support measures:
- Individual entrepreneurs (IEs) using the Simplified Taxation System (STS) and the Patent Taxation System (PTS) will retain their VAT exemption in 2026 if their income limit of 20,000,000 rubles for 2025 was exceeded due to interest on deposits and account balances in banks;
- IEs who have lost the right to use the PTS can claim a deduction for "input" VAT on goods and services not used under the PTS, while those who switched from the STS to the general taxation system can reduce their income by the amount of VAT on previously received advances;
- IEs who combined the PTS with the General Taxation System (GTS) and exceeded the income limit of 20,000,000 rubles in 2025 can switch to the STS from January 1, 2026, provided they notify the Federal Tax Service (FTS) by June 1, 2026. IEs who combined the PTS and STS also have the right to change their STS tax base for the entire year 2026;
- Small and medium-sized businesses (SMBs), when calculating their eligibility for reduced insurance contribution rates, can now combine income from primary and additional activities if these activities are included in the list approved by the Government of the Russian Federation.
We recommend analyzing the possibility of applying this law to optimize your tax burden. The C Cases team is ready to assist with preparing the necessary documents for submission to the Federal Tax Service of Russia.