Russia raises corporate profit tax to 25% from 2025

Federal Law no. 176-FZ of 12 July 2024 amended the Tax Code as part of a wider tax reform. The higher rate applies to the profit tax base formed from 2025.

What changed

• The general corporate profit tax rate rises from 20% to 25% from 1 January 2025.
• For 2025 to 2030, 8% goes to the federal budget and 17% to the regions. From 2031 the split becomes 7% and 18%.
• Accredited IT companies pay 5% to the federal budget and 0% to the regions for 2025 to 2030.
• Foreign companies without a permanent establishment in Russia also pay 25% on most income, subject to the exceptions in article 284 of the Tax Code.

Who is affected

Russian companies and foreign companies with Russian-source income, and those preparing their tax returns and deferred tax balances.

Sources

• Federal Tax Service: from 1 January 2025 the profit tax rates will be increased
• Federal Tax Service: the profit tax rate has changed from 2025