Friday, October 02, 2026

Russia proposes higher tax fines amid projected budget deficit

October 2, 2026
1 min read
Russia proposes higher tax fines amid projected budget deficit
Russia proposes higher tax fines amid projected budget deficit

Russian media reported on 1 October 2026 that the government had increased by one-third its planned revenue from fines imposed on individuals and businesses, as it seeks to support the federal budget amid a projected deficit of 15 trillion roubles over the next three years.

According to an explanatory note accompanying the draft budget and published in the State Duma database, the Russian treasury expects to receive a record 1.696 trillion roubles from fines, sanctions and compensation payments in 2026–2029. A package of amendments to the Tax Code, designated No. 617-9, has been submitted to the State Duma. From 1 January 2027, most fines for breaches of tax legislation would rise by between 1.16 and three times.

The proposed increases would particularly affect people involved in tax inspections. A witness’s fine for failing to appear would rise from 1,000 to 14,000 roubles, while the penalty for giving false evidence would increase from 3,000 to 42,000 roubles. The fine for an expert or interpreter who refuses to take part in an inspection would rise from 500 to 7,000 roubles, and the penalty for a knowingly false conclusion from 5,000 to 14,000 roubles.

The fine for failing to provide documents requested by the tax authorities would increase from 200 to 560 roubles per document. Percentage-based fines linked to unpaid tax would remain unchanged, although the bill would raise minimum penalties in some cases. For organisations and individual entrepreneurs, the fine for failing to provide taxpayer information would rise from 10,000 to 25,000 roubles; for individuals, it would increase from 1,000 to 2,500 roubles.

For failure to submit mandatory information, the fine would rise from 5,000 to 14,000 roubles, and from 20,000 to 56,000 roubles for a repeat offence. The penalty for breaching rules on the custody of seized property would increase from 30,000 to 83,000 roubles. For tax agents, the fine for delaying personal income tax calculations would rise from 1,000 to 1,850 roubles for each month, while the penalty for documents containing inaccurate information would increase from 500 to 900 roubles per document.

The source material argues that the higher penalties would increase pressure on businesses, particularly small enterprises and individual entrepreneurs. It also says that high interest rates, rising input and logistics costs, and limited scope to raise prices could make it harder for companies to absorb additional compliance costs. These potential effects are presented as assessments rather than established outcomes.

Source report

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