Mishustin explained the purpose of the tax maneuver in the IT industry

the Tax maneuver in the Russian IT industry, announced on Tuesday by Russian President Vladimir Putin has two key objectives. About that today at the government meeting said Prime Minister Mikhail Mishustin.

According to him, “an initiative announced by the President, is an open — ended measures to support the IT-industry” and “the past months have clearly shown how this sphere is important and promising for the modern economy and its stable development.”

“it is Proposed, in particular, to dramatically lower the rate of insurance premiums to 7.6% and profit tax from 20% to 3%. It will be one of the lowest tax rates in the world, and this maneuver has two key objectives,” — said Mishustin, quoted in a press-service of the Cabinet.

As pointed out by the head of the government, first of all, “the tax burden of domestic companies when doing business in Russia should not be higher than the tax burden of foreign companies making profit from sources in our country.”

in addition, the Prime Minister added, “to do business in foreign markets must be cheaper from Russia than from any other country you can emigrate, either physically or infrastructurally, domestic entrepreneurs”.

we will Remind, on June 23, speaking during a televised address to Russians, Russian President Vladimir Putin proposed several measures to support companies in the sphere of information technologies. “As a first step, I propose to conduct in the IT-industry of so-called tax maneuver and above all significantly reduce the load on the wage Fund. And this, I note, the bulk of costs for tech companies”, — said the head of state.

According to him, previously, the government doubled to 15%, lowered the rate of insurance contributions for all companies small and medium-sized businesses. “I believe that in the IT field, we can and must go further. Now the rate of insurance contributions for such companies of 14 percent for the period up to 2023. I propose to reduce it to 7.6 percent. And not just temporarily, but indefinitely,” — said Putin.

in addition, it was considered appropriate to “drastically reduce the rate of profit tax for IT companies, of course, in perpetuity, from the current 20 percent to 3 percent.” “That is not only comparable, but even better than these attractive today for IT business jurisdictions, as the Indian and Irish. In fact, it is one of the lowest tax rates in the world,” — said the President.

meanwhile, earlier on Thursday, the newspaper “Kommersant” reported that the Russian government has figured out how to compensate for the lost revenues of the Federal budget from the President declared the “tax maneuver” in the IT industry.

the Ministry of communications has already prepared the relevant ideas that are instructed to study the first Deputy Prime Minister Andrei Belousov. In particular, it is proposed to compensate for the benefits at the expense of VAT refund on the sale of software. Already in 2021, this should bring in a budget of 42.5 billion rubles, according to the publication.

Domestic companies special registry of the introduction of VAT it is proposed to offset subsidies, but the rest of the software will rise more than 16%.

market Participants are afraid that it negates the effect of the promised support measures.

let’s Add that the Russian economy in February—March 2020 was under the powerful impact of two negative factors — the rapid spread of the pandemic coronavirus infection COVID-19 and its deleterious effect on the global economy and collapse in oil prices. Against this background, the rouble significantly depreciated against the dollar and the Euro. Reacting to the situation, the government and the Bank of Russia adopted several packages of measures to support the economy and citizens.

on 2 June Prime Minister Mikhail Mishustin Putin presented the national plan on recoveringthe statement of the Russian economy in 2020-2021 years, noting in particular that the cost of the plan will amount to about 5 trillion roubles. On 19 June the state was sent the updated draft of the plan.

Stories about how you tried to get help from the Russian state in terms of coronaries and what came of it, email it to COVID-19@rosbalt.ru