Tax relief measures announced by the Russian government for small businesses will exclude around 1.5 million entrepreneurs operating under Russia's patent-based tax system, leaving many of the country's smallest firms facing higher tax burdens under a broader fiscal overhaul.
The proposed amendments, reported by Forbes Russia, would freeze until 2029 the revenue threshold at which companies using Russia's simplified taxation system (USN) become liable to pay value-added tax (VAT). The threshold would remain at 20 million rubles ($278,000).
However, entrepreneurs using the patent taxation system (PSN) would not receive the same relief. Under current plans, the revenue threshold for VAT liability on the patent regime will fall to 15 million rubles ($208,500) in 2027 and to 10 million rubles ($139,000) in 2028.
Russia introduced major tax changes in 2026 that expanded VAT obligations for parts of the small-business sector as the government sought additional revenue amid rising budget pressures driven by military spending and a slowing economy.
The patent taxation system is typically used by microbusinesses and sole proprietors with relatively modest turnover.
