Russian Business Pilots AI-Powered Tax Platform
Russia is quietly building one of the world’s most automated tax systems – and small businesses are the testing ground.
Starting September 1, 2025, a sweeping experiment in digital taxation will go live in several Russian regions. The country is launching an Automated Simplified Tax System — a contactless, AI-driven platform that promises to upend how small businesses interact with the government.
This isn’t just software modernization. It’s a structural overhaul of tax administration. The system fully integrates commercial bank accounts, digital cash registers, and each taxpayer’s online cabinet. Financial transactions – both through point-of-sale systems and bank accounts — will feed directly into a government AI that calculates taxes and generates payment orders without human input.
The Russian Federal Tax Service will have real-time access to primary financial data. Integrated with the Unified Taxpayer Account, the system allows entrepreneurs to manage their tax obligations through a single digital interface, eliminating the need for accountants altogether.
One of the boldest features: personal income tax is automatically calculated and withheld. Reports to the Social Fund are generated electronically. Businesses are freed from paying insurance premiums (except for workplace injury coverage). Employees’ social guarantees will be covered through government-backed compensation programs.
This pilot phase runs through 2027, giving Russian authorities time to refine the tools before potentially scaling them nationwide. Experts estimate that the system could reduce administrative tax costs for small businesses by up to 80%.
If the rollout succeeds, it could mark a major leap toward a fully digital tax ecosystem — an infrastructure where tax compliance becomes a background function of doing business. For entrepreneurs, the promise is radical simplicity: no paperwork, no reporting, no manual errors — just business.
