Various benefits for Russian IT companies have been introduced in 2022 in order to develop and support the IT industry, which include the following:
- 0% corporate profit tax rate for 2022-2024.
For Russian IT-companies the profit tax rate for the years 2022-2024 is reduced to 0% if the following conditions are met:
- The company has received a certificate of accreditation for carrying out IT-activities.
A Russian IT-company has only one condition for accreditation: the company’s code of activities, which is included into the trade register, should correspond to certain code groups related to IT field. Accreditation for IT companies, which is carried out by the Ministry of Finance, is valid indefinitely, and can be obtained online in one day.
- The income share condition
Revenue for IT-services must amount to at least 70% of the company’s total income. The law also includes a list of the services which are deemed as IT-services for these purposes;
If a company loses its state accreditation or if the income share requirement is not met at the end of the year, corporate profit tax must be recalculated from the beginning of the year at the regular rates (20%).
Until July 2022 the legislation also contained a headcount requirement (with minimum of 7 employees) for the application of the reduced tax rates, but this condition has been abolished.
- Reduced rates of social insurance payments
Employers in Russia are responsible for paying the social insurance for their employees. Qualifying IT-companies (the same conditions as for income tax) can apply the reduced social insurance payments rates, which are set at a general rate of 7.6% (with the standard rate of 30%).
- Moratorium on inspections
An accredited IT-company cannot be subject to scheduled inspections by governmental agencies before the end of 2024. The moratorium applies to unscheduled inspections as well, which are prohibited until the end of 2022, but not only for IT-sector, but for all Russian companies.
- Simplified procedure for employment of foreign specialists
Accredited IT-companies may hire foreign specialists without any special permission (except for companies-residents of technological-innovative special economic zones).
- Soft loans
Accredited IT-companies may receive preferential credit at a rate not exceeding 3% p.a., if there is no lay off of the personnel and wages are indexed annually.
- Preferential mortgages for employees
From 13 May 2022 to 31 December 2024 employees of Russian IT companies aged 22 to 44 (inclusive) can obtain a mortgage loan with a rate of maximum 5% p.a. The credit limit depends on the region where the premises to be purchased is located.
The Ministry of Finance has prepared a special internet portal with detailed information on this support measure (https://www.gosuslugi.ru/ipoteka).
- Military deferment for employees
Graduates with at least 11 months of work experience in IT-companies during the year preceding the call-up date and up to 27 years of age will be able to get deferment.
- Eligibility for accelerated depreciation in
IT companies have the right to apply a coefficient not exceeding 3 for corporate profit tax to certain items from 1 January 2023.
At KBK Accounting, we are ready to help you with applying for the special accreditation for IT-companies, payroll and general accounting.