Russia Payroll Changes - 2026

1. Rate/Percentage changes affecting payroll

• Insurance premiums
  • The reduced insurance premium rates have been cancelled for this year.
  • New applicable rates: 30% and 0.2%.

2. Other payroll-impacting changes (corporate / entrepreneur taxation)

• VAT on simplified taxation systems
  • Effective: January 1, 2026 (stipulated in Federal Law No. 425-FZ).
  • Scope: Entrepreneurs and companies using the "income" and "income minus expenses" simplified taxation systems.
  • Income thresholds for VAT application:
    • 2026: Annual income of 20 million rubles or more.
    • 2027: The limit will be reduced to 15 million rubles.
    • 2028: The limit will be reduced to 10 million rubles.
  • Reduced VAT rates (based on annual income):
    • 5%: For income up to 272.5 million rubles.
    • 7%: For income from 272.5 to 490.5 million rubles.