Vedomosti: The Ministry of Economy proposed extending benefits to musicians for the IT sector

Benefits for the IT sector may extend to the music industry, reported Vedomosti with reference to the road map of the Ministry of Economy. The measures should stimulate the production of domestic musical content, according to the department.

According to Vedomosti, the draft roadmap has been sent for approval to the Ministry of Culture, the Ministry of Finance and the Ministry of Digital Development. The corresponding draft law is going to be submitted to the government in July 2023. For the issuance of tax benefits, they plan to establish an institution for accreditation of musical organizations. The publication does not specify under which department this structure will be created.

The work on the document was confirmed by the Ministry of Economy. The ministry explained that the specific conditions for obtaining benefits will be determined after the approval of the revised roadmap.

As one of the authors of the document explained to Vedomosti, tax benefits will be received by authors, artists, labels, music publishers, concert organizations and distributors. The list may be expanded in the future. To receive benefits, an organization must receive at least 70% of income from musical activities, and also have state accreditation in the field of music.

According to the authors of the document, the music industry can be exempted from VAT for the implementation of exclusive rights to musical works, results of performing activities and phonograms. In addition, for musicians, the corporate income tax rate for the regional budget can be zeroed out at 17% and kept at 3% for the federal budget, as well as lower insurance premiums.

Olesya Pavlenko