Domestic IT companies are going to extend tax holidays

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government agreed with the proposal of the head of the Ministry of Communications Nikolay Nikiforov to keep the benefits for domestic IT companies. The decision to extend the benefits for 5 years until 2023 (the current grace period should have ended in 2017) will be made in the near future, Izvestia writes. Most likely, the government will satisfy this request, and the benefits will be extended.

Experts believe that the current 14 percent preferential rate of insurance premiums provides an opportunity for Russian IT companies to invest in business development and growth. Earlier, a plan was presented, according to which, from 2018, the preferential rate of 14% should have been reduced, with a tax rate increase to 30% by 2020.

“This measure to stimulate the Russian IT sphere has shown its effectiveness and has proved that domestic software developers, with proper government support, can compete with their Western counterparts. In this regard, it was decided to extend the validity period of preferential insurance premiums for IT companies by 5 years, ”a source in the government commented on the situation.

The head of the Russian Software Development Center, Evgenia Vasilenko, believes that the extension of the tax rate is the basis for the implementation of the import substitution program and the expert. First of all, this measure is aimed at developers of popular software and hardware products.

“The measure allows Russian companies to invest in their own development, create new solutions and develop current products. The payroll fund for developers is up to 80% of all costs. That is, for companies, payments related to the wage fund are practically negotiable. An increase in insurance premiums will lead to disastrous consequences for the industry. Profit will decrease significantly, companies will not have their own funds for development, ”says Vasilenko.

The head of the Russian Association of Electronic Communications, Sergey Plugotarenko, also believes that “preferential holidays” should be preserved.