The Federation Council approved the law on tax maneuver in the IT industry
The Federation Council at the final meeting on Friday approved a law on tax maneuver in the IT industry and the simplification of the procedure for the recognition of natural persons-tax residents of the Russian Federation.
Russian President Vladimir Putin in late June, proposed to be held in the IT-industry tax maneuver, including permanently lower the rate of insurance contributions of companies to 7.6 per cent from the current 14%, and the rate of income tax to 3% from 20%. The law prepared by the Cabinet pursuant to this order, provides for the introduction of innovations in 2021, as well as zeroing of the rate of profit tax in the part payable to the regional budgets.
Such preferences will get the business, 90% of the income generated from the sale of software and services for its development and implementation, explained earlier, the Prime Minister of the Russian Federation Mikhail Mishustin. According to him, fall under the tax maneuver Russian design-centers the design and development of electronic products and software developers, including in the field of artificial intelligence.
The Minister of Finance Anton Siluanov noted that one of the elements of the tax maneuver is a revision of the order of exemption of the industry from VAT. It is proposed to exempt from VAT the implementation of exclusive rights for the programs included in the unified register of computer programs and databases that will improve the targeting of this benefit.
Mishustin, answering questions of deputies during the report on the work of the Cabinet in 2019, said that Russia plans 12.5-fold increase in the number of people employed in the IT sector doubled to increase the demand for Russian software products and services, and create conditions for the emergence of about 1 thousand new Russian IT-startups. A major role in this, according to him, given the tax maneuver in the IT field.
In addition, the law will allow private entities who were in Russia this year from 90 to 182 days inclusive, to recognize themselves as Russian tax residents based on the statement supplied to the tax free form together with the tax Declaration for personal income tax.
The rule regarding residence, will extend to relations arising from 1 January 2020, that is, to have retroactive effect.