A levy for online advertising has been introduced

What’s happened?

 On April 1, 2025, provisions came into force requiring mandatory contributions for the distribution of online advertising. The corresponding amendments were introduced to the Federal Law No. 38-FZ of March 13, 2006 “On Advertising” (hereinafter referred to as «the Advertising Law») by Federal Law No. 479-FZ of December 26, 2024.

Who is required to pay the contributions?

The following parties are liable for the contributions:

1. Advertising distributors and advertising system operators that place advertisements on the Internet aimed at attracting the attention of consumers located in Russia (hereinafter referred to as “advertising distributors”) [1];
2. Any persons, whether natural or legal that (а) carry out activities to distribute online advertising on behalf and at the expense of an advertiser/advertising distributor, or (b) provide services for distributing online advertising in their interests (hereinafter referred to as “advertising agents”) [2].

Interestingly, there is no direct indication of the need for advertising agents to target their advertising at Russian consumers, nor are there any restrictions based on the place of registration or tax residence of such payers. That is, formally, any person that carries out these activities may fall under the obligation to make the contributions. At the same time, we believe that the absence of such a provision is merely the result of a legislative drafting inaccuracy.

Generally, advertising distributors and advertising agents pay the contributions on their own.

However, if a Russian advertiser—whether an individual, a sole proprietorship, or a legal entity—enters into a contract with a foreign individual or legal entity or a stateless person for the distribution of online advertising aimed at Russian consumers, the Russian advertiser is obligated to calculate and withhold the contributions from the funds paid[3].

[1] Article 18.2(1) of the Advertising Law

[2] Article 18.2(10) of the Advertising Law

[3] Article 18.2(5) of the Advertising Law

What is the contribution rate?

The contribution rate is set at 3%[1].

The received funds are to be credited to the federal budget and are expected to be used for supporting rights holders of Russian software and the development of certain information resources[2].

How is the base for calculating contributions determined?

The base for calculating contributions is the income received from the relevant activity during the quarter[3].

For advertising distributors, the base is the income earned from placing advertisements. For advertising agents, it is the amount of agency remuneration or income earned from the provision of advertising distribution services in the interests of such an advertiser and/or advertising distributor. It is assumed that if contributions on the income from providing advertising distribution services are paid by the advertising agent, the advertising distributors will not have to pay contributions on that advertisement[4]. It is expected that this will help avoid the “doubling” of contributions.

In general, the Russian Federal Service for the Supervision of Communications, Information Technology, and Mass Media (“Roskomnadzor”) independently calculates the amount of contributions based on the information provided to it[5]. In fact, the information will be sourced from the already functioning information system, «the Unified Online Advertising Register». The submission of information to this system is mandatory for advertisers (with the exception of owners of exclusive rights to goods or sellers of goods), advertising distributors, operators of advertising systems, and individuals who provide access to informational resources on the internet for more than 200,000 users[6].

Roskomnadzor will also monitor the completeness and timeliness of payment of the contributions[7].

[1] Article 18.2(4) of the Advertising Law

[2] Article 18.2(1) of the Advertising Law

[3] Article 18.2(3) of the Advertising Law

[4] Para. 5 of the Draft Resolution of the Russian Government On the Approval of Special Considerations Related to the Calculation and Payment of the Levy Provided for in Article 18.2(1) of the Federal Law ‘On Advertising’ and the Procedure for Monitoring the Completeness and Timeliness of Payment of Such Levy

[5] Article 18.2(6) of the Advertising Law

[6] Article 18.1(3) of the Advertising Law

[7] Article 18.2(7) of the Advertising Law

Which advertising revenues are exempt from contributions?

The law provides exceptions to the obligation to pay contributions. Specifically, contributions are not required for advertising placed:

1. on the websites owned by:
   • TV and radio broadcasters;
   • news agencies;
2. on the websites that are registered as online publications whose editorial offices and/or founders are:
   • government or municipal authorities, or in whose charter capital there is a share owned by the Russian Federation, a constituent entity of the Russian Federation, or a municipal entity;
   • receive budget allocations during the year;
   • carry out the activities of an editorial office, publisher, or founder of a periodical, provided that their total circulation meets the criteria set by the Advertising Law;
3. on all-Russian mandatory public access TV channels and TV channels that carry out digital broadcasting in multiplexes throughout Russia.

Payment deadline and further details

Other details regarding the payment procedure for contributions should be established by the Russian Government[1]. The Russian Government will also determine the criteria for classifying information disseminated on the Internet as advertising[2].

The Russian Government has not yet been adopted such a regulation. However, a draft resolution prepared by the Ministry of Digital Development exists[3].

According to the draft, Roskomnadzor will calculate the amount of contributions no later than the 15th day of the second month of the quarter following the reporting quarter in the payer’s online account[4].

The payment of mandatory contributions must be made no later than the 5th of the third month of the quarter following the reporting period[5].

[1] Article 18.2(8) of the Advertising Law

[2] Article 18.2(2) of the Advertising Law

[3] Draft Resolution of the Russian Government On the Approval of Special Considerations Related to the Calculation and Payment of the Levy Provided for in Article 18.2(1) of the Federal Law ‘On Advertising’ and the Procedure for Monitoring the Completeness and Timeliness of Payment of Such Levy (Draft ID 02/07/03-25/00155826) (the “Draft Resolution”)

[4] Para. 10 of the Draft Resolution

[5] Para. 9 of the Draft Resolution

Do you have any questions or would like to discuss something? Please send an email to Nadezhda Danilenko