Global Daily Tax News, Russia Plans Higher Tax For IT Sector In 2026 Budget, (Oct 2, 2025)

The Russian Government has proposed raising the tax burden on IT companies, as part of revenue-raising measures proposed for inclusion in the 2026 Budget.

In legislation tabled before the lower house of parliament on September 29, the Government has proposed that the current 7.6 percent rate of social security contributions for IT companies will be raised to 15 percent – half the standard rate that applies to other non-tax privileged sectors.

The 7.6 percent rate would be retained only for highly paid experts – those who receive salaries exceeding RUB2.8m (USD34,480) per year.

The Government has also proposed reestablishing VAT on the acquisition of Russian software.

IT companies currently benefit from a five percent concessionary rate of corporate tax, guaranteed until at least 2030.