THE REGULATORY FRAMEWORK FOR THE ACTIVITIES OF SMALL AND MEDIUM-SIZED ENTERPRISES

The article examines the specifics of legal regulation of small and medium-sized businesses in Russia, as well as the transformation of tax mechanisms affecting the functioning of the entrepreneurial sector. The key provisions of federal legislation, including Federal Law No. 209- FZ, are analyzed along with regional and municipal initiatives that form the legal framework for the development of small enterprises. Particular attention is paid to the analysis of tax regimes available to SMEs, including the simplified taxation system, the patent regime, and the tax on professional income. A significant part of the study is devoted to the 2025 innovations related to recognizing taxpayers under the simplified taxation system as VAT payers. The paper outlines the criteria for exemption, the rules for applying reduced rates, and the methodological features of calculating the tax base. It concludes that the modernization of the tax system strengthens the institutional role of SMEs, creating new challenges for tax planning and financial sustainability strategies. The results emphasize the need to find an optimal balance between state interests and business development.