Updated

Russia's Federal Tax Service has begun requiring companies using the simplified taxation system, known as USN, to submit documents detailing corporate-card expenses, according to tax consultants and lawyers who spoke to RBC. If a company cannot confirm such expenses, authorities may treat them as employee salary and assess personal income tax of 13 to 22 percent plus insurance contributions of 30 percent on the amount. Meduza reported that the service had rarely scrutinized this spending because it does not affect the tax a company owes, and that it now analyzes banking transactions in bulk using big data methods. Companies began receiving requests in 2026. Lawyer Alexandrina Gin of Gin and Partners said the aim is an additional source of budget revenue that requires little labor or time, while other lawyers said the requirements are justified because employees may not use corporate cards for personal expenses. Experts advise firms to document expenses and repay the company for personal spending. The article also reports that the service is checking canceled receipts from self-employed individuals, having found violations among 3,000 taxpayers since the start of the year and fined them 300 million rubles in total, and that it is asking entrepreneurs to explain 2023 to 2024 income from Dubai real estate deals. Meduza also reported that frequent transactions during working hours and regular interregional payments could serve as a red flag, potentially leading authorities to suspect illegal entrepreneurship. No official statement from the service was cited.