Russian ministry accredits over 6,000 IT firms for benefits

MOSCOW, Jul 5 (PRIME) -- Russia’s communications ministry has granted more than 6,000 IT companies state accreditation entitling them to receive benefits, including lower taxes, the ministry said Tuesday in a statement.

The current allowance, expiring in 2017, stipulates a tax rate for IT companies, accredited by the 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.

Other benefits include a right to employ high-qualified foreign specialists and add expenses on purchase of computers fully into stock.

“Benefits as a systemic measure of support for the IT industry have been of high demand among Russian companies for the recent several years…One of the most important priorities, which we pointed out several years ago, is prolongation of allowance on the payroll tax for IT companies. Following an order of the Russian president, the ministry is preparing the required amendments,” Communications Minister Nikolai Nikiforov said.

In May, President Vladimir Putin ordered Prime Minister Dmitry Medvedev to prolong the current beneficial payroll tax rates for software producers until 2023, and the decree is to be fulfilled by January 1, 2017.

End