Magadan Region Slashes Taxes for Small Businesses and IT Sector in 2026

The Magadan Regional Duma has passed new tax laws to align with changes in Russia’s Tax Code starting January 1, 2026. These adjustments introduce reduced rates for certain businesses and maintain existing benefits for others. The region has kept its 'tax holiday' for first-time individual entrepreneurs. Newly registered business owners will still pay a 0% tax rate under the scheme.

For small and medium-sized enterprises on the simplified tax system, rates of 3% or 7.5% will apply depending on their tax base. Social enterprises will see even lower rates of 1% or 5%.

The IT sector has received targeted support. Businesses in software development, IT consulting, and data processing will pay reduced rates of 2.5% or 7% until 2030. These cuts aim to meet the Russian President’s goal of speeding up the industry’s growth.

The changes follow new Tax Code provisions allowing regions to set lower rates for specific sectors using the simplified tax system. The new laws preserve favourable conditions for small and medium-sized businesses. They also provide long-term tax relief for IT companies in Magadan Oblast. The measures are set to take effect from 2026.