Putin orders conditions for small and medium-sized businesses in Russia to be "simplified"

Putin ordered that conditions for small and medium-sized businesses in Russia be “simplified”

The Russian government must “consider the issue of simplifying the conditions” for doing business for small and medium-sized companies engaged in manufacturing goods. The Russian president gave this instruction following the St. Petersburg International Economic Forum.

The government must report on the progress of its “consideration of the issue of simplifying conditions” for small and medium-sized businesses by October 1, 2026.

The list of instructions also includes introducing amendments to legislation that would preserve the simplified taxation system at an income threshold of up to 20 million rubles.

In November 2025, the Russian president signed a law raising the VAT rate from 20% to 22% and lowering the threshold for the simplified taxation scheme from 60 million to 20 million rubles.

It was expected that from 2027 the threshold would be lowered to 15 million rubles, and from 2028 to 10 million rubles. However, in June the Russian president announced that the further reduction of the income threshold for the simplified taxation scheme would be postponed.

@meduzalive