Tax easing for SMEs in 2026: What the Ministry of Finance is proposing and how it will impact businesses

In 2026, small and medium-sized businesses faced significant changes in their tax burden—primarily regarding VAT, special regimes, and insurance contributions. In response to the emerging adaptation risks, the Russian Ministry of Finance has proposed initiatives to amend a number of regulations.

The proposed measures are not aimed at reversing reforms, but at reducing transition costs for entrepreneurs who changed their tax status or lost their right to special regimes in 2026.

Support for companies that have lost their right to the patent tax system

One of the sore points was the loss of the right to use the patent taxation system (PTS). For some entrepreneurs, this meant an automatic transition to more complex regimes requiring VAT payment.

The Ministry of Finance proposes introducing VAT tax breaks on goods, works, services, and property rights for companies that lost their right to the patent tax system in 2026.

In fact, the point is to reduce the abruptness of the transition so that entrepreneurs are not faced with:

• increasing administrative burden;
• complication of accounting;
• increase in tax liabilities.

This measure allows for the workload to be redistributed over time and avoids cash flow shortages during the adaptation period.

Possibility of switching to the simplified tax system when combining modes

A more flexible mechanism has been proposed for businesses that previously combined the patent and general taxation systems.

If revenue exceeds 20 million rubles, companies will be able to switch to the simplified taxation system (STS) starting January 1. This allows them to:

• maintain a more predictable accounting model;
• minimize the risks of the entire “common system”;
• optimize VAT administration.

From a practical standpoint, this reduces the likelihood that entrepreneurs will find themselves in a regime for which they are not organizationally prepared.

Accounting for VAT on prepayments when switching to the simplified tax system

Special attention is given to companies using the simplified tax system that became VAT payers in 2026.

It is proposed to allow VAT on advance payments received before the transition to the new regime not to be included in revenues.

This is a technically important adjustment, because without it, entrepreneurs could:

• pay tax twice – upon receipt of an advance and upon sale;
• artificially inflate the tax base;
• face a cash load without actual profit.

For accounting purposes, this means the need for a clear distinction between advance receipts by dates and tax regimes.

Revision of the rules for calculating income for VAT purposes

A significant change was the proposal to not include interest on deposits and account balances in Russian banks when calculating income for 2025 (up to 60 million rubles), if exceeding this threshold deprived the entrepreneur of the right not to pay VAT.

This adjustment:

• eliminates the influence of passive income on tax status;
• protects entrepreneurs from formal loss of benefits;
• eliminates the situation where a financial safety net actually leads to an increase in the tax burden.

A similar approach is planned to be extended to individual entrepreneurs who have lost their right to the patent tax system starting in 2026.

Relaxation of requirements for reduced insurance premiums

For manufacturing enterprises, it is proposed to abandon the rule that the main type of activity must provide at least 70% of the income for the previous year in order to apply reduced insurance premiums.

In practice, this requirement often deprived companies of benefits that:

• temporarily diversified activities;
• received a one-time large income in another direction;
• were in the process of restructuring.

The abolition of the strict interest rate criterion makes the mechanism more flexible and is consistent with the logic of supporting the manufacturing sector.

Separate measures for catering establishments

The catering sector continues to be considered sensitive to tax burdens.

It is proposed:

• exempt companies on the simplified tax system and patent tax system from VAT in the period from April 1 to December 31;
• do not apply the condition that the wage level corresponds to the regional average.

The last point is especially important for small businesses, which objectively cannot always maintain the formal level of average wages, but at the same time create jobs and provide local employment.

What does this mean for business?

The proposed changes show that the regulator acknowledges the difficulties of adapting to the 2026 reform.

The following tasks become key for entrepreneurs:

• conduct an audit of the tax status and regime;
• recalculate the predicted load taking into account the new concessions;
• correctly organize the accounting of transition operations;
• check the income structure for 2025;
• assess the right to reduced insurance premiums.

It is important to note that even with the relaxation of rules, the requirements for tax administration remain high.

The Ministry of Finance’s proposals are aimed at targeted adjustments to the most sensitive elements of the tax reform for SMEs.

This is not a radical overhaul of the system, but the proposed changes allow for:

• reduce the risk of mass loss of special regimes;
• minimize technical errors during the transition;
• smooth out cash flow gaps;
• support individual industries.

For businesses, 2026 remains a period of heightened attention to tax planning. Initiatives to ease regulations create additional opportunities, but their implementation requires careful legal and accounting adjustments.