Magadan slashes taxes for IT firms and small businesses in 2026 overhaul

The Magadan Regional Duma has passed new tax laws to support local businesses. These changes follow recent amendments to Russia’s Tax Code, which take effect on 1 January 2026. The measures aim to boost growth in key sectors, including information technology. Under the new rules, the region can now set lower tax rates for companies using the simplified tax system in certain industries. Small and medium-sized businesses will pay either 3% or 7.5%, depending on their tax base. Social enterprises will benefit further, with rates of 1% or 5%.

The IT sector has received targeted support. Businesses in software development, IT consulting, and data processing will face reduced rates of 2.5% or 7% until 2030. This aligns with a presidential decree to accelerate the industry’s development. The region has also kept its 'tax holiday' for newly registered individual entrepreneurs, who will continue to pay 0% tax.

Favourable conditions for small and medium-sized businesses under the simplified system remain unchanged. The new laws confirm these existing benefits while introducing fresh incentives for specific sectors. The tax cuts for IT businesses are designed to spur regional growth in technology. Reduced rates for social enterprises and first-time entrepreneurs will ease financial pressures. These changes take effect from 1 January 2026, providing long-term support for local industries.