TL;DR
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Delovaya Rossiya has sent more than 50 economic proposals to Russian authorities, including ending or narrowing tax arrangements used by small businesses and sole proprietors. The measures are proposals, not adopted policy; the Finance Ministry says they need further study, and their eventual fate is unclear.
Delovaya Rossiya, one of Russia’s largest business associations, has proposed more than 50 economic reforms that include ending or restricting tax breaks used by small businesses. The proposals have been sent to government agencies for review, but have not been adopted; the Finance Ministry said they require further comprehensive study.
Among the proposed changes, the association wants to eliminate the “income” option under the simplified tax system (USN) and the automated simplified tax system (AvtoUSN) from 2027. Businesses using those options currently pay tax on total revenue at rates of 6% under USN and 8% under AvtoUSN. Delovaya Rossiya also proposes applying a common value-added tax threshold of 20 million rubles in annual revenue across special tax regimes. Under current AvtoUSN rules, businesses can avoid VAT up to 60 million rubles.
The package would also remove regional governments’ ability to lower USN rates, abolish the patent tax system used by sole proprietors, and tax gifts and inheritances. Publicly traded shares would be exempt from the proposed inheritance and gift taxes. Separately, the association proposes requiring social insurance contributions from people whose income mainly comes from interest and dividends.
The potential reach is broad: the report says nearly 3.5 million entrepreneurs use USN, while about 1.5 million use the patent system. Yevgeniya Memruk, head of the Union of Accountants and Tax Consultants, told RBC that replacing the revenue-based tax options could leave some small firms with a tax base at least two and a half times larger. She warned that this could make some businesses unprofitable and lead them to close.
How Small Firms Could Be Affected
The proposals could alter the tax calculations and operating costs of businesses that currently rely on special regimes, including sole proprietors and firms with relatively high margins. Memruk told RBC that the revenue-based options are used by businesses with revenues of 10 million to 20 million rubles whose costs are low relative to income. She said shifting them to other regimes could substantially increase their taxable base.
A uniform VAT threshold could also reduce AvtoUSN’s appeal for businesses approaching the 20-million-ruble limit. Sberbank said earlier this year that the number of its business and individual entrepreneur clients using AvtoUSN had risen sixfold in one month, as the threshold for businesses on the regular USN was lowered to 20 million rubles. The source gives that reported change and time period, but does not provide a broader baseline for comparison.
Removing regional discretion over USN rates could affect competition among regions seeking to attract businesses through lower taxes. The report also notes that abolishing the patent system could affect entrepreneurs in trucking, independent retail, and personal and household services, while reducing revenue for regional budgets.
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Why Delovaya Rossiya Backs Reform
Delovaya Rossiya says special tax arrangements can be abused by businesses that artificially split operations or present themselves as self-employed to reduce their tax bills. Association chairman Alexey Repik has argued that companies posing as small businesses distort competition. Experts cited by RBC acknowledge that abuse exists, but Memruk argued that the proposals target the tax regimes themselves, which many small firms use legitimately, rather than only individual offenders.
Repik is the founder of pharmaceutical company R-Pharm. The Bell reported that he met Vladimir Putin at the Kremlin one day before the association presented its proposals and described a willingness to support the authorities’ approach. According to The Bell, Repik said that “higher taxes today are better than sky-high rates forever” and called a Russian entrepreneur a patriot rather than someone seeking quick profit.
The proposals also arrive amid existing changes to eligibility thresholds. The annual revenue limit for the patent system was cut to 20 million rubles in 2026 and is scheduled to fall to 10 million by 2028. The report says this has already made the system less popular, though it remains in use by about 1.5 million entrepreneurs.
““Higher taxes today are better than sky-high rates forever.””
— Alexey Repik, Delovaya Rossiya chairman, as quoted by The Bell
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Policy Status Remains Unsettled
It is not yet clear which proposals, if any, the Russian government will adopt, or whether they will be revised during review. The Finance Ministry has said the package needs further comprehensive study, and the source material does not report a final government decision, legislation, or implementation schedule beyond the association’s proposed dates.
The stated October 15 forum is expected to feature presentation of the reform program, with Putin also expected to attend. Attendance or consideration by senior officials would not by itself mean the proposals have been approved. The government’s full response and the reasoning behind any eventual decision remain unknown.
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Government Review And Forum
Delovaya Rossiya’s reform program is due to be presented at its October 15 forum, which Putin is expected to attend. The proposals have already been sent to relevant government agencies, and the Finance Ministry has reviewed them at an initial stage, according to the report.
The next clear milestone is whether officials advance, amend, or reject any of the measures. Until the government announces a decision or introduces legislation, the changes remain proposals; businesses should not treat the proposed 2027 start dates as settled policy.
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Key Questions
Have the proposed tax changes been adopted?
No. Delovaya Rossiya has submitted the measures for government review. The Finance Ministry said they require further comprehensive study.
Which small-business tax systems could be affected?
The proposals include ending the revenue-based options under USN and AvtoUSN, applying a common VAT threshold across special regimes, removing regional authority to lower USN rates, and abolishing the patent tax system.
When could the proposed changes take effect?
Delovaya Rossiya proposes several changes, including ending the specified USN and AvtoUSN options and setting a common VAT threshold, from 2027. These dates are proposals, not confirmed implementation dates.
Why does the association say it wants to change the tax regimes?
Delovaya Rossiya argues that some businesses misuse special regimes by splitting companies or posing as self-employed to reduce taxes. Experts cited by RBC say abuse is a real issue but warn that broad changes could also affect compliant small businesses.
How many entrepreneurs could be affected?
The report says nearly 3.5 million entrepreneurs use USN and about 1.5 million use the patent system. It does not establish how many would face higher taxes or close if the proposals were adopted.
Source: rss
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