Ministry of Finance has introduced important amendments to the Tax Code of the Russian Federation, approved by the Government. Increased limits for financial aid to families, introduced benefits to support the special military operation (SVO), extended 0% VAT for hotels, and raised VAT exemption threshold for catering. News - in review.
The Government approved the amendments of the Ministry of Finance to the second reading of Draft № 835237-8. Key changes include:
Impact on Russian Businesses:
These changes directly reduce the tax burden for companies in key sectors:
Recommendations for Businesses:
Legislative changes require prompt and precise adaptation of accounting and tax reporting. Our team of experts is ready to handle these tasks:
The Government approved the amendments of the Ministry of Finance to the second reading of Draft № 835237-8. Key changes include:
- Financial aid to families with children: Employers will be able to pay up to 1 million rubles per child (birth, adoption, guardianship) tax-free (no personal income tax or insurance contributions), compared to the current limit of 50,000 rubles. These amounts can be included in non-operating expenses.
- Support for the SVO: Tax benefits apply to the gratuitous transfer of property (excluding cash), works, and services for SVO needs.
- Hotel business: the 0% VAT rate is extended until 2030 (currently until June 30, 2027).
- Catering sector: The VAT exemption income threshold will increase from 2 to 3 billion rubles.
Impact on Russian Businesses:
These changes directly reduce the tax burden for companies in key sectors:
- For all employers: the cost of supporting employees with newborn/adopted children is reduced by increasing the non-taxable limit of maternity care and the possibility of its cancellation.
- For companies that provide support for their SVO: the process of gratuitous assistance is simplified and cheaper, since the transfer of property / services does not lead to tax obligations for the recipient, and the costs for the transferring party reduce the tax base.
- For hotels: the extension of the zero VAT rate until 2030 ensures long-term stability and cost reduction.
- For catering companies: more cafes and restaurants (with revenues of up to 3 billion rubles) will be able to benefit from VAT exemption, which simplifies their operations and reduces prices for the end user.
Recommendations for Businesses:
- Review the details: Thoroughly study the final text of the law after its adoption.
- Adapt processes: Make changes to accounting policies, financial assistance agreements, documentation for gratuitous transfers (if necessary), and tax calculation systems.
- Verify eligibility for benefits: Ensure the business activity qualifies under the new conditions (especially for catering and hotels).
Legislative changes require prompt and precise adaptation of accounting and tax reporting. Our team of experts is ready to handle these tasks:
- Advise on application of new regulations
- Promptly implement changes to accounting policies and documentation workflows
- Ensure accurate reflection of tax benefits in financial reporting
- Mitigate risks of errors and tax reassessments
