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(English) Government prepares support measures for Russian IT companies

24 июня 2020

(English)

The Government has prepared a so-called “tax maneuver” for some Russian IT companies, the USRBC reported, citing Government sources.

The move would reduce social security contributions from 14% to 7.6%, and the income tax from 20% to 3%. It would also cancel the VAT on some advertising on foreign sites and offer to software developers the possibility of receiving special subsidies.

Russian IT companies who receive at least 90% of their income from sales of software and services would be eligible for support. There is no stated end-date for support measures.

Earlier this month President Putin instructed the Government to “prepare a multifaceted plan to support the [IT] industry”. At the meeting, representatives of the Russian IT industry said that the industry’s profits had fallen 40% in 2020 and it would lose 10% of its workforce (50,000 employees) due to the pandemic.

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