IT companies in Russia can get income tax preferences

IT companies in Russia can get income tax preferences

The authorities will consider the possibility of additional preferences for income tax for companies in the field of information technology. This is stated in the materials for the draft federal budget, which are at the disposal of TASS. 

“Establishment of additional preferences for corporate income tax for companies operating in the field of information technology, in terms of providing such organizations with the opportunity to apply an investment tax deduction in relation to certain types of expenses, as well as apply an increasing coefficient to the depreciation rate in relation to certain types of depreciable property,” - says in the list of topical issues of taxation for the future.

It is also planned to consider the feasibility of maintaining tax preferences, “providing for a reduced corporate income tax rate on income in the form of dividends paid from sources in Russia, subject to a number of conditions, for companies registered in the relevant jurisdictions, but having a significant economic presence in the Russian Federation”. The introduction of this measure, the document says, is proposed to be considered in order to neutralize the consequences of denunciation of agreements on the avoidance of double taxation.

The authorities will also discuss the extension of the rule limiting the reduction of the tax base of the current period by the amount of losses incurred in previous tax periods. The provisions of the Federal Law of July 2, 2021 No. 305-FZ “On Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts” implemented the extension of the current restriction until December 31, 2024.