Russian Parliament Keeps Income Threshold for Small Businesses on Simplified Tax System Until 2030

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Russian lawmakers have passed a bill in second and third readings that maintains the revenue threshold of 20 million rubles ($255,000), above which companies and individual entrepreneurs using the simplified taxation system (UTS) must switch to paying value-added tax (VAT). This threshold will remain in place until 2030.

Starting from 2030, the revenue threshold will be lowered to 15 million rubles ($191,000), and from 2031 it will decrease further to 10 million rubles ($127,000). According to the financial and economic rationale, the adoption of the law will result in a loss of federal budget revenue of 51.1 billion rubles ($655 million) in 2027, and approximately 100 billion rubles ($1.3 billion) annually in 2028-2029.

The law will come into effect on the day of its official publication.

It is worth noting that under the current version of the Tax Code, the maximum revenue limit was supposed to be reduced to 15 million rubles from 2027, and to 10 million rubles from 2028.