Russia's 2025 economy: Small businesses boom as big firms decline and taxes surge
Russia’s business landscape saw mixed trends in 2025. While small businesses and sole traders grew, the number of larger incorporated firms fell. Meanwhile, tax revenues surged, driven by higher contributions and economic adjustments. The number of registered sole proprietors rose by 320,000, reaching 4.86 million in 2025. At the same time, the self-employed sector expanded by 26.8%, hitting 15.4 million. Small and medium-sized enterprises (SMEs) also grew by 3.8%, totalling 6.83 million.
However, the number of incorporated companies dropped by 69,000 to 3.16 million. This decline contrasted with the broader growth in smaller business categories. On the tax front, the Federal Tax Service (FTS) transferred 61.2 trillion rubles to the national budget—a rise of 8.8% from 2024. Federal budget revenues climbed 7.5% to 26.6 trillion rubles, while social insurance contributions jumped 16.4% to 14.9 trillion rubles. Regional budgets also saw a 5.3% increase, receiving 19.7 trillion rubles. Looking ahead, Russia will raise its VAT rate from 20% to 22% starting January 1, 2026.
The data reveals a shift toward smaller business structures in 2025, alongside a significant boost in tax revenues. With VAT set to increase in 2026, further changes to economic and fiscal conditions are expected.
