IT-companies want to reset export tax
The Ministry of Economy has developed an action plan for the implementation of the strategy of developing exports of services until 2025. A few words in the document are given to IT companies, and this is good news.
The project provides for a zero tax rate on profits derived from the implementation of telecommunication, computer and information services in foreign markets . The necessary changes are expected to be made to the Tax Code by December 30, 2019.
This will be a significant incentive for Russian companies, which in 2018 set an absolute record for exports: $ 2.55 billion in the first six months . For the first time in history, the balance of exports and imports of IT services in the Russian Federation has become positive.
According to the Central Bank, in the first nine months of 2018, exports grew to $ 3.83 billion. At the Ministry of Finance, the Federal Tax Service and the Ministry of Economy, which are responsible for implementing the initiative, did not provide comments.
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The head of the Russian Export Center (REC) project to support exports and information technology, Marat Karavaev, believes that the increase in exports is due to the efforts of Russian IT companies to promote their services in foreign markets, as well as with the implementation of the import substitution program. Objectively speaking, there may be some other factors that Marak Karavayev does not say about:
Managing Partner of the UK Law and Business Alexander Pakhomov in a comment to Kommersant reminded that for the IT market participants there are already tax breaks. Russian tax legislation implies, in particular, exemption from VAT on services and work on the development of software and its modification, if the counterparty is located abroad. In addition, there are benefits for the payment of insurance premiums for IT companies until 2023 inclusive.
Vladimir Yelizarov, partner of Deloitte in the CIS, head of the group for providing services to companies in the high-tech, telecommunications, entertainment and media sectors, added that the new privilege could be one of the criteria for international companies to create or increase their own development centers in Russia. Among such companies, in his opinion, there may be, for example, classic software developers in various fields, as well as developers of computer games and applications.
The project provides for a zero tax rate on profits derived from the implementation of telecommunication, computer and information services in foreign markets . The necessary changes are expected to be made to the Tax Code by December 30, 2019.
This will be a significant incentive for Russian companies, which in 2018 set an absolute record for exports: $ 2.55 billion in the first six months . For the first time in history, the balance of exports and imports of IT services in the Russian Federation has become positive.
According to the Central Bank, in the first nine months of 2018, exports grew to $ 3.83 billion. At the Ministry of Finance, the Federal Tax Service and the Ministry of Economy, which are responsible for implementing the initiative, did not provide comments.
')
The head of the Russian Export Center (REC) project to support exports and information technology, Marat Karavaev, believes that the increase in exports is due to the efforts of Russian IT companies to promote their services in foreign markets, as well as with the implementation of the import substitution program. Objectively speaking, there may be some other factors that Marak Karavayev does not say about:
- due to a drop in wages, the Russian worker has become cheaper and, therefore, more competitive in foreign markets;
- Due to the fall in domestic demand as a result of the economic crisis, companies have to focus more on the external market. Objectively, manufacturers like Kaspersky Lab can never count on serious sales in Russia, which can be compared with sales in Europe and the USA.
Managing Partner of the UK Law and Business Alexander Pakhomov in a comment to Kommersant reminded that for the IT market participants there are already tax breaks. Russian tax legislation implies, in particular, exemption from VAT on services and work on the development of software and its modification, if the counterparty is located abroad. In addition, there are benefits for the payment of insurance premiums for IT companies until 2023 inclusive.
Vladimir Yelizarov, partner of Deloitte in the CIS, head of the group for providing services to companies in the high-tech, telecommunications, entertainment and media sectors, added that the new privilege could be one of the criteria for international companies to create or increase their own development centers in Russia. Among such companies, in his opinion, there may be, for example, classic software developers in various fields, as well as developers of computer games and applications.
Source: https://habr.com/ru/post/441592/
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