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New Law Authorizes FNS to Analyze and Share Financial and Tax Data to Strengthen Business Transparency
President Vladimir Putin has signed a federal law amending the Russian Federation’s law “On the Tax Authorities of the Russian Federation” (No. 943-I of March 21, 1991), granting the Federal Tax Service (FNS of Russia) expanded powers to conduct formal assessments of the financial and business activities of legal entities and individual entrepreneurs.
The new powers take effect on January 1, 2026, and are part of an effort to increase transparency, risk mitigation, and market discipline in Russia’s business environment.
Key Provisions of the Law
Under the amended law, the FNS will be authorized to:
- Conduct analytical evaluations of tax and financial data submitted by businesses.
- Issue formal reports (“assessments”) that state whether a business’s indicators align with predefined evaluation criteria (based on accounting, tax reporting, and other available data).
- Provide these assessments to:
- The subject entity itself (e.g. company or entrepreneur),
- Other parties—but only where federal law permits such disclosure.
Nature of the Assessment
The FNS evaluation determines compliance or non-compliance of a business’s financial and tax indicators with established benchmarks. These benchmarks will be defined in official methodologies developed by the FNS.
If the evaluated entity disagrees with the assessment, it may submit a request for correction, along with supporting documents. The FNS must then respond within five business days, either amending the report or issuing a justified refusal.
Third-Party Requests and Disclosures
If a third party (e.g. a potential business partner or financial institution) requests an evaluation report:
- The FNS will first send the report to the evaluated business.
- If no objection is raised, the report will be sent to the third party after five business days.
- If the business submits a correction request, the FNS will process it, and the report will be provided to the third party 10 business days later, unless corrected.
Implementation Framework
The following will be approved and issued by the FNS:
- The official methodology for conducting evaluations;
- Rules for submitting requests and delivering results;
- Standardized formats and forms for both reports and responses.
Implications for Businesses and the Economy
This legislative update marks a significant move toward greater accountability in Russia’s corporate sector. By allowing the FNS to issue formal assessments—and selectively share them—the reform supports:
- More informed decision-making by potential partners, investors, and regulators;
- Greater business transparency and due diligence;
- A potential reduction in fraud and misconduct among unscrupulous market participants.
Businesses are encouraged to monitor the upcoming methodology and prepare their accounting and tax records accordingly to minimize the risk of adverse assessments.
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