The Ministry of Digital Development proposed to provide tax incentives to IT companies that are created by "digital residents", similar to measures to support Russian IT players, writes RBC.

Such a mechanism was previously launched in a number of other countries. It allows the recipient to issue a digital ID card that can be used when dealing with banks and other organizations. At the same time, the document does not provide such persons with a residence permit, citizenship and tax residency.

The introduction of digital residency in Russia was discussed as part of the second package of measures to support the IT industry. The government instructed the Ministry of Finance to prepare proposals for the implementation of this mechanism.

Additional measures for the implementation of digital residency include:

• expansion of privileges in the taxation of intellectual property;
• amendments to the legislation governing the process of registration of remote work under an employment agreement from abroad;
• development and amendment of currency control, as well as in criminal and administrative legislation, establishing flexible rules for the work of IT companies with foreign counterparties.

The digital residency model is planned to be introduced by the Ministry of Digital Development in February 2022.

Original (in Russian)