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Mishustin proposed to reduce for IT-companies income tax and contributions

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Mishustin proposed to reduce for IT-companies income tax and contributions

the Parameters of the tax maneuver in the Russian IT industry, developed on behalf of the President of the Russian Federation, it is planned to announce in the near future, reported the newspaper “Vedomosti”.

Prime Minister Mikhail Mishustin proposes to reduce IT companies insurance premiums from 14% to 7.6% and profit tax from 20% to 3%. The head of government proposed to abolish VAT on advertising, research and software to foreign digital platforms to give software developers the opportunity to receive special subsidies.

the Tax benefits will be open-ended and focused on all Russian IT companies that have at least 90% of revenues are sales of software and services for the development, implementation and support.

New benefits will create an attractive environment for returns from other jurisdictions back to the country IT companies, created by Russians.

President Vladimir Putin at a meeting with representatives of IT-industry 10 June 2020 instructed to develop tax reform for high-tech companies. In Russia there should be created a global competitive conditions for domestic experts, said the Russian President.

Vladimir Putin during the meeting for communications and IT industry thanked the Russian telecommunications company, to ensure continuous operation and proper level of services. The President noted that those companies that went to meet growing demand and provided services for free, eventually increased its user base.

Putin urged not to lose sight of the difficulties now facing the it industry and the economy as a whole. The President noted the possible forced reduction of the costs of the real sector on innovation, software and related services for objective financial and economic constraints. Therefore, the President considers it necessary to support the increase in demand for Russian information technology on domestic and foreign markets.