In a paper for the May issue of the journal ‘IFRS in Practice’, Stanislav Antonov, Director of Audit for High-Tech Companies at FBK, takes an in-depth look at the new minimum tax mechanism for international groups of companies. The mechanism was introduced by amendments to Chapter 25 of the Russian Tax Code (Federal Law No. 425-FZ dated 28 November 2025) and has been in effect since 1 January 2026.
The author outlines the key differences between the Russian sovereign mechanism and the global OECD reform, identifies the entities subject to the new rules, and uses practical examples to illustrate the algorithm for calculating top-up tax to bring the effective tax rate up to 15%.
The paper also deals with complex accounting issues: how the new rules affect the recognition of deferred tax assets and liabilities under IFRS, and what disclosures should be made in the notes in the face of legal uncertainty.
‘Unlike most jurisdictions that follow OECD recommendations, Russian entities cannot take advantage of the temporary exemption from recognising deferred taxes — they will have to exercise professional judgment regarding the rate to be used for calculating deferred taxes,’ says the expert.
To learn how to properly account for the new minimum tax in IFRS Accounting Standards financial statements and get the company ready to apply it — read the full article.
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