Starting in 2025, entrepreneurs will have an easier time switching between special tax regimes in Russia

The President of Russia has approved amendments to the Tax Code that clarify the procedure for making such switches. These amendments will change the terms of payment for patents and make the process of switching easier. This will benefit entrepreneurs and small businesses by making it easier for them to change their tax regime as needed.

The amendments include the following key changes:

1. Entrepreneurs and individuals who currently pay the professional income tax (PIT) will now also have the option to use a patent, automated simplified taxation system (ASTS), or Unified Agricultural Tax (UAT) and simplified taxation system (STS).
2. If an entrepreneur transfers from PIT to STS, UAT, patent or ASTS , they can notify the tax authority within 20 days of the transfer using the MyTax mobile application.
3. The criteria for who is not eligible to apply for ASTS have been clarified by the latest amendments. Previously, enterprises and individual entrepreneurs with annual revenues exceeding 60 million rubles were prohibited from applying. From January 1st, 2025, this restriction will apply to those with total revenues exceeding this amount in the previous calendar year prior to transitioning to the pension scheme.
4. The terms of payment of patents will also be revised. Entrepreneurs are required to pay the tax by December 28 if the payment falls on December 31.