The law enabling Russian IT companies – software developers to enjoy tax relief comes into force on Friday, January 1. Particularly, it lowers the rates of insurance premiums for the industry and income tax rates, TASS reported.
A respective bill was signed by Russian President Vladimir Putin into law in late July. The tax maneuver envisions a reduction starting January 1, 2021 of the rate of insurance premiums for the industry from 14% to 7.6%, and of the income tax rate – from 20% to 3%.
The reduced taxation rate is only applicable to software developers and does not apply in respect of distributors and companies, whose revenue from production of respective products will be less than 90% in the total revenue structure. IT companies have to obtain state accreditation from the Russian Ministry of Digital Development, Communications and Mass Media to apply for the tax relief.
Since plans to introduce the tax relief for Russia’s IT sector were announced the demand of such companies for accreditation by the Ministry of Digital Development, Communications and Mass Media has soared.
For example, the number of state accreditation applications climbed seven-fold as 646 applications were received by the ministry from June 24 to August 10, and 94 applications were received in the same period before June 23, Deputy Minister Maksim Parshin said earlier.
