From January 01, 2021, IT-companies shall have the right to apply a reduced profit tax rate of 3% instead of 20% and a reduced rate of insurance premiums of 7.6% instead of 14%. To be eligible to these benefits the IT-company shall receive respective state accreditation, generate at least 90% of all income from the implementation of computer programs and related services and have at least seven employees.
VAT exemption will remain in force with respect to computer programs included in the unified register of Russian programs. VAT exemption applies not only to software developers but also to other participants in the software supply chain.
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NAZALI TAX & LEGAL |