Russia to decide on zero profit tax for IT firms after Q3
MOSCOW, Mar 15 (PRIME) -- Russia’s Digital Development Ministry will decide on cancellation of the corporate profit tax for IT companies after consideration of the July–September results of the industry’s health, Minister Maksut Shadayev said on Wednesday.
“A decision whether the Digital Development Ministry will support prolongation of the current exemption from the corporate profit tax or not will be made in view of the real state of the IT industry depending on the results of 2023…we may say depending on the results of analysis of the industry’s state in July–September,” Shadayev said.
Business daily Vedomosti reported earlier that the ministry had suggested zeroing the profit tax for IT companies indefinitely.
The law stipulates a zero corporate profit tax for IT companies till December 31, 2024. It was adopted in 2022 as a measure of support of the IT industry after the U.S. and the E.U. imposed their sanctions. Prior to the move, the tax amounted to 20%.