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For IT-companies will reduce the rates of insurance premiums and income tax

Russian President Vladimir Putin, during a regular televised address during the coronavirus pandemic, proposed a tax maneuver in the IT industry.

Vladimir Putin noted that in order to support such an IT industry, “not just effective, but non-trivial approaches and solutions are needed”. “Entrepreneurs, employees prefer to live and conduct business where it is as convenient and comfortable as possible. Therefore, the tax, financial, legal conditions for work in our country should be globally competitive. And this requirement applies, in fact, not only to the IT sector, but to all sectors of the Russian economy without exception” – the president said.

As part of the tax maneuver, the head of state instructed the government, first of all, to reduce the fiscal burden on the payroll fund for IT workers.

Vladimir Putin recalled that current standards for IT companies set a reduced insurance premium rate of 14% for the period until 2023. Now, the head of state has proposed reducing the total rate of insurance premiums to 7.6% and setting such a rate on an unlimited basis. The President of the Russian Federation also instructed to reduce the income tax rate for the IT industry from the current 20% to 3%.