IT companies may be offered an indefinite zero income tax

The Ministry of Digital Development proposed to make an unlimited zero rate on income tax for IT companies. A letter with such an initiative signed by Deputy Minister Alexander Shoitov was sent to the Plenipotentiary Representative of the Government of the Russian Federation in the State Duma Alexander Sinenko (Vedomosti saw the document). At the time of submission of the material, the press service of the Ministry of Digital Transformation did not respond to a request from Vedomosti. But a source close to the ministry confirmed that a letter with such content had indeed been sent.

As the Ministry of Digital Development notes in a letter, the legislation provides for a zero income tax rate for IT companies until December 31, 2024. “Taking into account the possible timing of the adoption of the bill, the actual period for applying the proposed benefits will be limited to a calendar year. In this regard, we propose to envisage, within the framework of the bill, a rule establishing the indefinite nature of the preferential income tax rate,” the document says. The law that zeroed out income tax until 2024 for IT companies was adopted in the spring of 2022. It was one of the support measures for the IT sector after the introduction of US and EU sanctions. Prior to this, the tax for the industry was reduced from 20 to 3%, this norm was valid indefinitely.