Magadan Oblast slashes taxes for SMEs and IT firms in 2026 reform

Magadan Oblast has updated its tax policies to align with upcoming changes to Russia’s Tax Code. The new measures, effective from January 1, 2026, aim to support businesses in key sectors. The Magadan Regional Duma has approved a series of laws to implement these adjustments. The reforms allow Russian regions to set lower tax rates for businesses using the simplified tax system in specific industries. In Magadan Oblast, small and medium-sized enterprises on this system will now pay either 3% or 7.5%, depending on their tax base. Social enterprises will benefit further, with rates set at 1% or 5%.

The region has also extended tax incentives for certain sectors until 2030. Software development, IT consulting, and data processing businesses will enjoy reduced rates. Accredited developers of Russian software registered in Magadan Oblast will receive these benefits.

Additionally, the ‘tax holiday’ for first-time registered individual entrepreneurs remains in place. Newly registered individual entrepreneurs will continue to pay a 0% tax rate under the preserved incentives. The new laws maintain favourable conditions for small and medium-sized businesses under the simplified tax system. They also introduce extended support for the IT sector. These changes will take effect alongside the broader amendments to Russia’s Tax Code in 2026.