Automated Simplified Taxation System (AUSN) is a pilot tax regime introduced for small businesses in Russia to reduce administrative burden—eliminating the need to file tax returns or manually calculate monthly payments. Instead, the Federal Tax Service (FTS) automatically calculates the tax based on data received from online cash registers, authorized banks, and the taxpayer’s personal account.
Taxpayers—individual entrepreneurs (IEs) or organizations—do not prepare an AUSN tax return or compute monthly liabilities themselves. However, this does not eliminate accounting responsibilities entirely: businesses must verify data transmitted by banks and cash registers, correctly classify transactions, and timely upload missing information into their FTS personal account.
AUSN operates under Federal Law No. 17-FZ dated 25 February 2022 and is implemented only in Russian regions that have adopted local legislation enabling it. The experiment runs until 31 December 2027.
- Who qualifies for AUSN—and how is tax calculated?
- Why do businesses choose AUSN?
- Pros and cons of AUSN
- Hidden risks and pitfalls
- Is AUSN right for your business—or should you choose another regime?
- How to switch to AUSN
Who qualifies for AUSN—and how is tax calculated?
Individual entrepreneurs and legal entities may apply for AUSN if they meet all statutory eligibility criteria simultaneously.
Average staff headcount must not exceed five employees, and total annual revenue must remain below RUB 60 million. For organizations, the residual value of fixed assets must not exceed RUB 150 million. All business bank accounts must be opened exclusively with credit institutions included in the FTS registry of authorized banks. Employee salaries must be paid non-cash only. AUSN cannot be combined with other special tax regimes (e.g., USN, ENVD, or patent-based taxation).
When calculating staff numbers, IEs do not count themselves—so an entrepreneur may work personally while employing up to five people. There is no limit on the number of accounts held at authorized banks, but entrepreneurial current accounts may not be opened at banks outside the AUSN system. A personal (non-business) current account may be held at any bank.
Not all taxpayers are eligible. Article 3 of Law No. 17-FZ explicitly excludes banks, insurance companies, microfinance organizations, pawnshops, non-state pension funds, professional securities market participants, non-profit organizations, peasant (farmer) households, and entities with separate subdivisions. Always consult the law directly before applying.
AUSN offers two taxable objects:
- “Income” basis: tax is calculated at 8% of recognized income. Expenses do not reduce the tax base.
- “Income minus expenses” basis: tax is levied at 20% on the difference between recognized income and allowable expenses. If the resulting amount is less than 3% of income—or if a loss occurs—the minimum tax payable is 3% of income. The chosen object can be changed only at the start of the next calendar year, with notification to the tax authority no later than 31 December.
The tax period is the calendar month. By the 7th of the following month, taxpayers must review transaction categorization performed by their bank. By the 15th, the FTS issues the calculated tax amount; payment is due by the 25th.
Why do businesses choose AUSN?
The primary reason is reduced administrative burden. Tax calculation is fully automated—no manual tax base formation or declaration filing is required.
AUSN taxpayers do not submit a USN tax return, insurance contribution reports, Form 6-NDFL, or employee income statements. Maintaining the Book of Income and Expense Accounting (KUDiR) is also unnecessary. However, some reporting remains mandatory—for example, employers with staff must still submit labor activity and insurance seniority data via form EFS-1 where required. A VAT return is needed if the taxpayer acted as a VAT agent or issued an invoice with separately stated VAT.
Another major advantage is zero rates for core social insurance contributions. IEs on AUSN pay no fixed contributions for themselves. Organizations and IEs also do not accrue standard-rate pension, medical, or social insurance contributions for employees.
Employees’ pension and social rights remain intact: compensation for these contributions is provided to the Social Fund from the federal budget. Employers continue paying the fixed occupational accident and disease insurance contribution—RUB 2,959 annually in 2026, paid monthly in twelfths.
An authorized bank acts as a partial NDFL (personal income tax) agent. Before each payroll, the employer must transmit to the bank details about the employee, taxable/non-taxable income, and applicable standard or professional tax deductions. The bank then calculates, withholds, and remits NDFL. Crucially, automation does not relieve the employer of responsibility for providing accurate source data.
Under AUSN, taxpayers generally do not charge or pay VAT, except in cases of acting as a VAT agent, importing goods, or issuing an invoice with separately stated VAT.
Pros and cons of AUSN
The main benefit is reduced ongoing accounting and tax compliance workload. The FTS calculates tax automatically; no AUSN return is filed; KUDiR is not maintained; and most payroll-related tax operations flow through the bank.
Savings on insurance contributions can be substantial for businesses with staff. For IEs, elimination of fixed contributions lowers mandatory costs regardless of financial results.
However, AUSN tax rates are higher than standard USN rates: instead of 6% on income, AUSN applies 8%; instead of 15% on “income minus expenses”, it applies 20%. Regional authorities cannot lower AUSN rates—so entrepreneurs benefiting from regional USN rate reductions may face higher tax burdens after switching.
Tax is payable monthly, whereas USN advance payments are quarterly—requiring stricter cash flow planning.
A strict headcount cap is a serious limitation: hiring a sixth employee immediately disqualifies the taxpayer. AUSN is therefore unsuitable for fast-growing teams or businesses approaching the RUB 60 million annual revenue threshold.
Business operations become dependent on seamless data exchange among cash registers, banks, and the FTS. Mislabeling a payment or misclassifying a transaction may distort the tax base. So while calculation is automatic, regular operational review remains essential.
Hidden risks and pitfalls
- Bank transaction classification errors: By the 7th of each month, taxpayers must verify whether the bank correctly categorized transactions as income, expense, or non-taxable. For example, if a loan repayment is mistakenly labeled as revenue, the tax base will be inflated. Corrections must be made before tax calculation.
- Not all bank debits qualify as deductible expenses (under “income minus expenses”): An expense must satisfy legal requirements, be substantiated, and be supported by documentation. The law also lists specific expenditures that are explicitly non-deductible.
- NDFL remains the employer’s responsibility: Although the bank calculates and withholds NDFL, the employer remains the statutory tax agent. They must provide complete and timely payroll and deduction data. Banks do not grant social or property tax deductions to employees. Per published FTS guidance, banks calculate NDFL at 13%; if income exceeds statutory thresholds, the tax authority independently calculates additional liability using the progressive scale.
- Loss of AUSN eligibility triggers immediate exit: Breaching the revenue cap, exceeding staff limits, opening an account at a non-authorized bank, or any other prohibited condition causes loss of AUSN status effective the 1st day of the month when the violation occurred. Notification to the FTS is required no later than the 15th of the
FAQ
Who qualifies for AUSN?
Individual entrepreneurs and organizations with up to 5 employees, annual revenue under RUB 60 million, and (for organizations) fixed assets under RUB 150 million. All business accounts must be with FTS-authorized banks, salaries paid non-cash, and no other special tax regimes used.
How is tax calculated under AUSN?
Tax is automatically calculated monthly by the FTS: 8% on income, or 20% on income minus allowable expenses (with a 3% of income minimum tax if loss or low result). The taxable object can only be changed at the start of the next calendar year.
What are the main risks of using AUSN?
Risks include inflated tax bases from bank misclassification of transactions (e.g., loan repayments labeled as income), non-deductible expenses despite bank reporting, employer liability for accurate NDFL data (banks apply only 13%, not progressive rates), and immediate loss of AUSN status upon violating eligibility rules.
