A bill proposing cutting income tax for Russian IT companies to 3 percent from 20 percent cleared the lower house of the Russian parliament on Wednesday
MOSCOW (Pakistan Point News / Sputnik - 22nd July, 2020) A bill proposing cutting income tax for Russian IT companies to 3 percent from 20 percent cleared the lower house of the Russian parliament on Wednesday.
The tax incentive was suggested by President Vladimir Putin for firms that make at least 90 percent of their profit from software design, sales and maintenance. It is expected to take effect in 2021.
Finance Minister Anton Siluanov said the bill will expand the range of companies eligible for exemptions from the value-added tax.
It will almost halve insurance premiums from the current 14 percent for the IT industry and streamline the process of acquiring Russian tax residency for persons staying in the country for 90 to 182 days, applicable retrospectively from January of this year.
