Putin orders lower payroll tax prolongation for IT firms till 2023

MOSCOW, May 26 (PRIME) -- Russian President Vladimir Putin has ordered Prime Minister Dmitry Medvedev to prolong current beneficial payroll tax rates for domestic software producers until 2023, and the decree is to be fulfilled by January 1, 2017, according to a statement released Thursday on the Kremlin’s Web site.

The current allowance, expiring in 2017, stipulates the tax rate for IT companies, which are accredited by the Communications and Mass Media Ministry, at 14% instead of the standard rate of 30%.

It was supposed earlier that the rate could be raised to 21% in 2018, to 28% in 2019 and 30% from January 1, 2020.

The communications ministry asked the government to prolong the tax benefit for IT companies until 2023 with a transitional period through 2025.

Thanks to the lower tax rate, software sales by IT producers soared to 102 billion rubles in 2014 from 28 billion rubles in 2010.

(65.8949 rubles – U.S. $1)

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