"Tax maneuver" in the IT-sphere and tax residency-2020
The State Duma adopted a bill on two topics: "coronavirus" tax residency for citizens and "tax maneuver" in the IT industry.
Under the new law, tax residents of the Russian Federation will be those citizens who have been in Russia for 90 days or more in 2020. Some citizens were unable to return to Russia because of the coronavirus. If they stayed in Russia for less than 183 days in a year, then under current rules, the income of these citizens will be subject to personal income tax at a rate of 30%, and they will not be able to take advantage of tax deductions.
The new law allows you to correct the situation by submitting a Personal Income Tax Declaration at the end of the year and simultaneously submitting an application for recognition as a tax resident.
VAT in the IT-sphere
Only software and databases included in a single register of Russian software and databases will be exempt from VAT. Now this applies to any software and databases.
At the same time, the IT companies will be able to sell and provide the right to use their software by remote access via the Internet without VAT. It is stipulated that there will be no tax exemption if the rights granted allow you to distribute advertising on the Internet, access it, place offers to buy or sell, search for sellers/buyers, or enter into transactions.
Reduced income tax
Accredited IT organizations with a staff of 50 or more will not be able to write off the cost of electronic computing equipment immediately as material expenses.
For income tax, the promised rate of 3%, which is fully credited to the Federal budget, will only be available to accredited IT organizations with at least 7 employees who have a profile income of at least 90%. This revenue will not take into account selling the rights mentioned above related to advertising, searching for contractors or entering into transactions.
Accredited IT organizations with at least 7 employees will pay fees at a total rate of 7.6%. In this case, the condition for the revenue is the same as for the profit benefit.
Similar benefits for income tax and contributions are established for designers and developers of electronic component base, electronic (radio-electronic) products.
All changes to taxes and IT contributions will take effect from next year.