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Russia cracks down on undeclared wages with stricter tax enforcement in 2026

A sweeping crackdown on off-the-books wages is reshaping Russia's labor market. Founders of bankrupt firms now face personal liability for unpaid debts.

The image shows a graph depicting the wages in the United States. The graph is accompanied by text...
The image shows a graph depicting the wages in the United States. The graph is accompanied by text that provides further information about the wages.

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Russia cracks down on undeclared wages with stricter tax enforcement in 2026

Tax authorities have revealed how they are cracking down on under-the-table wages, while the Labor Ministry has clarified new measures in the fight against such payments.

"In 2026, tax agencies continue their comprehensive efforts to identify undeclared income used to pay wages off the books," the Ministry of Taxes and Dues (MNS) reported.

The agency noted that "concealing cash revenue from taxation remains the primary method for funding under-the-table wages."

"Over the first three months of 2026, tax authorities uncovered 76.8 million rubles in undeclared cash revenue during enforcement operations," the MNS stated.

Businesses and self-employed individuals sent over 31,000 notifications and warnings in the first quarter of this year, "proposing voluntary compliance or requesting explanations," the ministry added.

"The total amount of personal income tax owed to the budget from these cases reached 37.8 million rubles," tax officials reported. "Following inspections, authorities identified 274 instances of unpaid income tax, resulting in 59 million rubles in assessed back taxes."

Tax authorities vowed to continue their crackdown on off-the-books wages.

Meanwhile, timely wage payments remain a top priority for officials, according to the Labor Ministry.

"Decree No. 45 has been enacted, expanding the powers of the State Labor Inspectorate. The document extends out-of-court enforcement to payments under civil-law contracts," the ministry announced.

The agency also clarified that "in cases of corporate bankruptcy, unpaid wages and civil-law contract debts will now be covered by the assets of the company's founders."

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