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Vedomosti

Insurance premiums and income tax can be reduced for Russian IT companies

June 22, 2020|
107

Prime Minister Mikhail Mishustin plans to reduce insurance premiums from 14 to 7.6$, and income tax from 20 to 3%. In addition, it is proposed that VAT from advertisements of solutions and software in foreign digital platforms will be eliminated and software developers will be able to receive special subsidies.

It is proposed that the changes will be introduced for an unlimited period of time, and any Russian or foreign IT company that is registered and operates in the Russian market and 90% of profits of which account for the sales of software and its development, implementation and support, will be able to use the new opportunities.

The reform should stimulate the export of Russian software and support developers in the face of demand reduction in the domestic market. Low insurance premium rates will reduce the costs of companies and will increase their competitiveness, while the reduced income tax will encourage IT companies founded by Russian nationals, to come from foreign jurisdictions back to the country.

On June 10, during the meeting with the representatives of the industry, Vladimir Putin instructed to prepare a comprehensive tax maneuver in IT sector.

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