Russian President Vladimir Putin proposed to permanently lower the rate of income tax for IT-companies from 20% to 3%, and almost twice for them to lower the rate of insurance premiums.

In a televised address to Russians, Putin said that the proposed tax rate on profits will be better than these attractive today for IT business jurisdictions, as the Indian and Irish.

“In fact, it is one of the lowest tax rates in the world.”

The rate of insurance contributions for IT companies now stands at 14% for the period up to 2023. Putin offered indefinitely to reduce it to 7.6%.

On Monday, the newspaper Vedomosti, citing Federal officials wrote that the new rates will be able to claim all Russian IT companies that have at least 90% of revenues are sales of software and services for the development, implementation and support.

The largest Internet company in Russia, Yandex (MCX:YNDX) and Mail.ru 40-60% of the proceeds from the sale of advertising on their services. Representatives of the companies failed to promptly provide Reuters review of new support measures.