New Framework for Penalties (с 1 сентября 2026)
- Law Reference: Federal Law № 425-ФЗ amended Article 114 of the Russian Tax Code. (nalog.gov.ru)
- Mitigation limits: In cases of mitigating circumstances, penalties can be reduced not less than by half, and not more than by tenfold of the originally prescribed penalty. (nalog.gov.ru)
- Qualifying mitigating circumstances may include:
- Errors in tax base calculation, provided they do not exceed 10% of the tax amount and 5 million RUB, without intent. (nalog.gov.ru)
- Minor delays in submissions or responses, depending on document type.
Why These Changes Are Important
The amendments offer predictability and fairness in tax enforcement. Businesses and others are now better informed about potential penalty risks and what factors might affect assessments. The explicit reduction factors (half to one-tenth) limit arbitrary or overly aggressive penalty assessments.(nalog.gov.ru)
What Taxpayers Should Do
- Review internal compliance and reporting practices—ensure that small miscalculations or delays fall within non-intentional thresholds.
- Track documentation and deadlines tightly to avoid exceeding allowable thresholds for mitigation.
- Maintain records showing lack of intent, prompt error correction, cooperation—these matter in qualifying for reduced sanctions.
Example Scenario
- A company declares a tax base that is 8% below what it should have been—but the error is discovered without external audit, correction submitted proactively. Since 8% < 10% and amount < 5 million RUB, mitigation may reduce penalty by up to ten-fold.
- If delay in document submission is just 9 business days, this may count as minor delay qualifying for mitigation.
Key Challenges
- Establishing absence of intent: evidence and documentation will be crucial.
- Smaller taxpayers may lack resources to challenge improper penalty assessments.
These reforms mark a move toward balanced enforcement in Russia, rewarding compliance and sincerity while retaining penalty powers for serious or deliberate violations.