2026 Tax Reform: Initial Results and New Risk Areas

The beginning of 2026 marked the entry into force of a large-scale package of tax changes. Rate increases, adjustments to special regime limits, and changes to the rules for applying benefits effectively reset the tax burden for a significant portion of businesses.

The first month of implementing the new rules has shown that formally clear changes have, in practice, given rise to a wide range of transitional and technical challenges. Companies are forced to simultaneously adapt their contractual framework, accounting processes, and financial models in response to the growing fiscal burden and increased oversight.

VAT increase to 22%: contractual risks and lack of transition mechanisms

The increase of the standard VAT rate from 20% to 22% has become a key driver for revisiting businesses’ financial obligations. Since no special transitional rules were introduced, taxpayers must rely on the general principle for determining the moment of supply — the applicable rate is defined by the date when goods, works, or services are deemed supplied. In practice, this means that the decisive factor is the moment the transaction is recognized, rather than the date documents are issued or payments are made.

In real-world scenarios, this has created challenges where:

• work was effectively completed at the end of 2025, while supporting documents were issued in January 2026;
• acceptance certificates were signed in one tax period, but invoices were issued in another;
• payment was made after the rate change took effect.

Each such situation requires an individual legal and tax analysis, since the determining factor remains the moment of supply rather than the payment date.

The rate increase has also compelled businesses to review existing contracts and renegotiate terms with counterparties.

Key contractual considerations include:

• whether VAT is contractually included in the price or charged in addition to it;
• how the risks of changes in tax legislation are allocated;
• whether price adjustment mechanisms are предусмотрены.

The clearer the tax clauses are drafted, the easier it is for parties to adapt to legislative changes and minimize the risk of disputes.

Where contractual resolution proves impossible, court practice provides guidance. In a recent ruling, the Constitutional Court acknowledged that part of the increased tax burden may be recoverable from a counterparty. This underscores the importance of maintaining a balance of interests and strengthens the role of legal argumentation in resolving such disputes.

Insurance premiums for SMEs: uncertainty regarding the application of benefits

Starting in 2026, the reduced insurance premium rate for SMEs was significantly limited. Only companies operating under certain OKVED codes were eligible to retain the benefit.

The practical problem lies not so much in the list itself, but in the mechanism for its implementation. The following questions arise:

• how the main type of activity is determined;
• how is income distributed between codes;
• What happens when you diversify your business;
• How is compliance with the established income threshold confirmed?

If the share of income from a privileged activity falls below the established level, the right to the reduced rate is lost. In the absence of detailed clarifications, this creates the risk of additional assessments and disputes with tax authorities.

Thus, the issue of correct internal accounting of income by type of activity acquires strategic importance.

Mass transition to automated system of simplified taxation and technical failure of the system

The reduction of the income limit for VAT-free operations under the standard simplified tax system to 20 million rubles has stimulated a mass transition of taxpayers to the automated simplified tax system (ASTS), where the threshold is set at 60 million rubles.

ASTS assumes:

• automatic interaction between banks and tax authorities;
• calculation of the tax base based on banking data;
• higher rates compared to the classic simplified tax system.

The sharp increase in the number of transitions revealed the unpreparedness of the digital infrastructure. The following were recorded:

• Incorrect display of the tax regime in personal accounts;
• technical failures in data transmission by banks;
• automatic recognition of all receipts as income without correct classification.

Such technical issues create the risk of creating an incorrect tax base and require businesses to actively monitor their status in information systems.

Intra-group services: strengthening the tax authorities’ evidence-based work

Judicial practice in recent months has demonstrated increased attention to intra-group transactions. Particular importance is being placed not on a formal set of documents, but on substantive confirmation of the reality and usefulness of services.

When evaluating such operations, the following are examined:

• economic necessity of services for Russian business;
• actual performance of work;
• no duplication of functions;
• compliance of the cost with the market level.

Tax authorities are actively using employee interviews and business correspondence analysis. The depth of audits indicates a shift toward more detailed evidentiary work.

In the context of expanding opportunities for desk audits, intra-group transactions are becoming one of the most sensitive areas of tax risk.

Fund transactions and the concept of unfair tax benefits

Practice in transactions with investment funds demonstrates the willingness of tax authorities to analyze the economic essence of complex financial structures.

If a significant decrease in the value of assets is caused by the actions of related parties and does not have objective market prerequisites, the transactions may be qualified as aimed at obtaining an unjustified tax benefit.

For business, this means the need to:

• documenting the economic purpose of operations;
• assessment of the interdependence of participants;
• analysis of the consequences of intra-group settlements.

Formal compliance with procedures does not guarantee protection in the absence of a business purpose.

Transfer pricing: Strengthening evidentiary requirements

Court practice in transfer pricing disputes confirms that the burden of proof of non-market pricing lies with the tax authority. At the same time, audits are becoming more complex and analytically intensive.

Particular attention is paid to:

• the correctness of the choice of the method for determining the price;
• comparability of similar companies;
• completeness of financial information;
• functional analysis of the parties to the transaction.

Companies operating cross-border should be prepared to undertake in-depth research into the group structure and the nature of services.

General trend: increasing workload and increased control

The first weeks of 2026 showed a dual dynamic:

• on the one hand, there is an increase in the tax burden and technical difficulties of adaptation;
• on the other hand, the active development of judicial practice, which forms new standards of legal certainty.

Businesses find themselves in a situation where they simultaneously need:

• quickly rebuild financial models;
• adjust contractual structures;
• strengthen internal tax control;
• prepare for more detailed inspections.

The tax system is entering a phase of heightened demand for evidence and the economic justification of transactions. Under these conditions, business sustainability is largely determined by the quality of tax planning, transaction structuring, and the willingness to rigorously defend one’s position.