Law permitting immediate seizing of unpaid taxes and penalties, enacted by Putin

Law permitting immediate seizing of unpaid taxes and penalties, enacted by Putin

In a significant shift, the Russian government has enacted a new law that allows tax authorities to recover undisputed tax debts directly from citizens without court involvement. This law, which takes effect on November 1, 2025, extends the current practice of extrajudicial tax debt recovery to private individuals for the first time.

The new law applies to physical persons who are not individual entrepreneurs and covers debts on personal income tax, transport and property taxes, fees, insurance contributions, fines, penalties, and interest. However, it is important to note that this law does not override the court system in cases of dispute.

If electronic notification is not possible, registered mail will be used to inform citizens about the debt recovery process. Upon receiving the notification, citizens have 30 days to object to the repayment demands, which will block the automatic withdrawal. If no objection is raised, the Federal Tax Service can directly debit the owed amount from the citizen's bank account, provided the debt does not exceed the negative balance of the unified tax account.

In cases of insufficient funds, authorized bailiffs can seize other personal assets to cover the debt. It is worth noting that the dispute process can be initiated at any time before the debt is recovered. Citizens can file a recalculation request or a complaint to dispute the amounts indicated in the tax notice.

Critics have argued that this law may infringe on constitutional rights, but President Vladimir Putin has signed the law into effect as of July 31, 2025. The measure aims to streamline collection and reduce the courts' workload, potentially increasing state revenues by an estimated 22.5 billion rubles ($287.5 million).

However, it is important to emphasize that the new procedure will not be used if there is a dispute with the tax authority. If a dispute is filed by the citizen, the debt recovery process will not begin. Notification of debt recovery will be sent through the taxpayer's personal account or the "Gosuslugi" portal.

[1] Source: Official website for publishing legal acts [2] Source: TASS News Agency [3] Source: Russia Beyond

This article is for informational purposes only and should not be considered as legal advice. For specific questions or concerns regarding the new law, it is recommended to consult with a qualified tax professional or legal expert.

1. The new law, signed by President Vladimir Putin, extends the practice of extrajudicial tax debt recovery to private individuals in Russia, affecting taxes, fees, insurance contributions, fines, penalties, and interests.
2. The new law in Russia, starting November 1, 2025, applies to physical persons who are not individual entrepreneurs and will be implemented through their personal accounts or the "Gosuslugi" portal, but court intervention will still be required in case of a dispute.

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