Putin instructed to ensure the adoption of laws on tax maneuver in IT and increasing the personal income tax for the rich

Russian President Vladimir Putin has instructed the government to ensure the adoption of laws on tax maneuver in the IT sector and the increase in personal income tax for incomes over 5 million a year. The period of performance of the assignment until 24 July.

we will Remind, on June 23 in a televised address to Russians, Putin proposed a number of 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.

Previously, “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, the newspaper claims.

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.

In the same address, Putin proposed to change from January 1, 2021 “tax rate on incomes of physical persons from 13 to 15 percent for those earning more than five million rubles a year.” The head of state said that “the increased rate will not be taxed on all income but only the portion that exceeds 5 million a year.” Such measures, according to President, will give the “budget of about 60 billion rubles”, and these funds will be used for “the treatment of children with severe, rare diseases, purchase of expensive medicines, equipment and means of rehabilitation, conducting high-tech operations”.

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