MOSCOW (Pakistan Point News / Sputnik - 24th July, 2020) The Russian parliament's upper house, the Federation Council, passed on Friday a law on implementing a tax maneuver in the IT industry and simplifying the procedure for recognizing individuals as tax residents of the Russia.
In late June, Russian President Vladimir Putin suggested lowering corporate tax for IT companies from 20 percent to 3 percent and reducing insurance premiums rate from 14 to 7.6 percent for an unlimited period of time. The law drafted by the government envisages that the regulation will enter in force in 2021.
According to Prime Minister Mikhail Mishustin, such preferences will be granted to businesses that generate 90 percent of their revenue from the sale of software and services for its development and implementation. Moreover, the tax maneuver covers Russian design centers developing electronic products, as well as software developers, including in the field of artificial intelligence.
At the same time, the law will allow individuals who have stayed in Russia for 90 to 182 days to register as Russian tax residents on the basis of an application submitted to a tax office in any form along with a personal tax declaration.
