Simplified procedure for SMEs applying reduced insurance contribution rates

On 14 April 2026, a tax bill passed its third and final reading in the State Duma. The bill introduces a series of changes to the Russian Tax Code for small and medium enterprises (SMEs), specifically:

• The requirement for at least 70% of income to be earned from the core activity in the previous calendar year to become eligible for a reduced social insurance contribution rate of 7.6% is lifted for manufacturing SMEs.
• For the purposes of calculating the 70% share of income for a reporting period, SMEs are now allowed to include not only income from their core activity but also income from approved non-core activities listed by the Russian Government.

If the bill is approved by the Federation Council and signed into law by the President of Russia, the amendments will take effect on the official publication date of the relevant Federal Law and will apply to legal relationships arising on or after 1 January 2026.