IT tax in Russia will be reduced
In a recent address to citizens, Russian President Vladimir Putin proposed a tax maneuver in IT.
The President said that this maneuver will significantly reduce the burden on the wage fund (payroll fund), which is “the main cost item for high-tech companies.”
“Now the premium rate for such companies is 14% for the period until 2023. I suggest reducing it to 7.6%. And not temporarily, but indefinitely. In addition, it will be correct to significantly, by an order of magnitude, reduce the income tax rate for IT companies, also, of course, indefinitely, from the current 20% to 3%, ”the Russian leader said.
President Putin also added that in fact it will be one of the lowest tax rates in the world.
As noted by the CEO of ANO “Digital Platforms” Arseny Shcheltsin, the measures proposed by the president are an unprecedented maneuver that will cause the growth of technological entrepreneurship not only in the country, but will also attract global startups to place development in Russia.
According to the expert, many high-tech enterprises already understand that their value is information technology, be it healthcare, industry, education, transportation or catering.
“Now, by providing informatization services, they will be able to claim benefits, which will increase the competitiveness of Russian solutions in the field of digital transformation of industries.
The above information is only a brief description of the provisions of the relevant Law up to the date of publication of this Memo and in no way is exhaustive. Further professional advice should be sought for each particular case. Our firm does not accept any responsibility for any loss or damage occurring by acting on the basis of this information. Also, please visit our website for further updates.