What tax incentives are there for the IT sector in Russia?

2023-11-28 06:09 Blog

VAT-exempted (Usual rate 20%) transfer (or licensing) of IP rights for the Software

Exception: Software for marketplaces (intermediary or advertisement operations)

Conditions for incentive:

Software is included in the ‘Registry of the Russian Software’
There are nine criteria for the inclusion in the Registry
The main one - >51% of the Company-owner of the Software should be owned by Russians.

Social contributions 7.6% (Usual rate 30%)

Profit tax 0% in 2023-2024 (Usual rate 20%)

Conditions for incentive:

License obtained from the IT Ministry
Website describing the IT services in Russian
IT revenue exceeds 30%
Wages in the Company exceed the average salary in the Russia
The Company operates in the sphere that is mentioned in the list of IT activities
IT-revenue exceeds 70% of all the Company’s income