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Putin suggests reducing income tax rate to 3% in IT sector

The rate of insurance contributions for such companies is 14% at present for the period until 2023

MOSCOW, June 23. /TASS/. Russian President Vladimir Putin suggested reducing the insurance contributions rate from 14% to 7.6% and the income tax rate from 20% to 3% for IT companies.

"I suggest implementing the so-called ‘fiscal maneuver’ in the IT industry as the first step and significantly reduce the burden on the payroll in the first instance. I would like to note that this is the main item of expenditures for high-technology companies," the President said.

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"The rate of insurance contributions for such companies is 14% at present for the period until 2023. I suggest lowering it to 7.6% and not temporarily, but perpetually. Furthermore, it will be proper to significantly, by one order, reduce the income tax rate for IT companies, also perpetually, as a matter of course, from recent 20% to 3%," Putin added.

Such conditions in Russia are now "better than in such attractive jurisdictions for the IT business as India and Ireland," the head of state said. "This will actually be one of the lowest tax rates worldwide," he added.

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