Russia Tax Agency Posts Letter Clarifying New Tax Incentives for IT Companies

Jan. 4, 2021, 5:00 AM UTC

The Russian Federal Tax Service Dec. 28 posted online Letter No. 03-07-07/111669, clarifying new tax incentives for information technology (IT) companies. The letter includes clarification that effective Jan. 1, 2021: 1) IT and computer software companies can apply a reduced profit tax rate of 3 percent; 2) these companies can also apply reduced insurance premium rates; and 3) the VAT exemption for computer programs in the unified register of Russian programs applies to developers and others in the supply chain of software. [Russia, Federal Tax Service, 12/28/20]

Reference:
View Letter No. 03-07-07/111669. View Announcement.

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