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Putin approves law on tax maneuver in IT sector

The reduced 7.6% rate of insurance contributions will be set for IT companies since 2021 and perpetually

© Alexei Druzhinin/Presidential press service/TASS

MOSCOW, July 22. /TASS/. Russian President Vladimir Putin signed into law the bill on the fiscal maneuver in the IT sector. The document was posted on the official web portal of legal information.

The rate of the income tax to be credited to the federal budget is set at the level of 3% and the income tax rate to be credited to regional budget will be zero for this sector. The right to apply the lower rate is suggested to be conferred to companies working in the IT sphere and eligible to apply lower tariffs of insurance contributions.

The reduced 7.6% rate of insurance contributions will be set for IT companies since 2021 and perpetually. The income tax rate of 3% and the consolidated insurance contribution tariff of 7.6% will also be lowered for designers and developers of electronic component base products and electronic (radio electronic) products.

The right to use reduced rates will apply to companies included into the register of enterprises providing services (performing work) on design and development of electronic component base products and electronic (radio electronic) products to be maintained by the Ministry of Industry and Trade.

The law also stipulates that individuals present on the Russian territory from 90 to 182 days inclusive in 2020 will have the right to recognize them as Russian tax residents in 2020 on the basis of an application filed to internal revenue authorities.

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