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Russia’s Federal Tax Service starts checking Russians’ corporate-card spending
Russia’s Federal Tax Service has begun asking companies on the simplified taxation system to provide documents for purchases made with corporate cards. The checks could lead to additional tax bills if expenses cannot be substantiated, as authorities may treat them as employees’ pay.
Requests began reaching companies in 2026, and tax experts say the service now uses large-scale analysis of banking transactions rather than relying mainly on targeted field audits. Unsubstantiated spending could attract personal income tax of 13–22% and insurance contributions of 30%; advisers recommend documenting business expenses and repaying the company for personal purchases. The checks are part of broader efforts to raise revenue, including scrutiny of cancelled self-employed receipts, where violations among 3,000 taxpayers have resulted in 300 million roubles in fines this year.
In short
- Russia is checking companies’ corporate-card spending.
- Unsupported expenses may be treated as employee salary.
- Tax bills could include up to 22% income tax and 30% contributions.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of the checks could argue that corporate cards are for business costs, and requiring receipts helps ensure that personal spending is not improperly treated as a tax-free company expense. Using transaction analysis may help enforce rules consistently and recover revenue that would otherwise be lost, supporting fairer treatment of taxpayers who report their income and expenses accurately.
The case against
Critics could argue that broad transaction analysis risks treating ordinary or poorly documented purchases as personal pay, exposing companies and employees to substantial tax bills even where there was no deliberate evasion. They may also question whether expanded scrutiny is proportionate, particularly when documentation requirements are onerous or tax authorities have wide discretion to reclassify expenses.
Explained simply
Russia’s simplified taxation system is a tax regime used by many smaller businesses, with fewer accounting requirements than the standard system. Companies may give employees corporate bank cards to pay for business costs such as travel or supplies, but the company must be able to show what the money was spent on.
The Federal Tax Service collects taxes and checks whether businesses have followed tax rules. If a company cannot support a card purchase with documents, officials may treat it as personal income paid to an employee, which can lead to income tax and social insurance charges. The checks matter to businesses because they may need clear records to show that company-card spending was for work.