Press about RVC

The IT Industry is Doomed to Be the Main Driver of the Russian Economy Development

Source: IA Regnum

The crisis caused by the coronavirus pandemic stimulates the government to develop support measures for business, which is why Russian President Vladimir Putin, in his address on June 23, proposed a tax manoeuvre in the IT industry and reduce the burden on the payroll. The deputy general director of RVC Aleksei Basov announced this to IA REGNUM.

He drew attention to the fact that until 2023 the rate of insurance premiums is 14%. It is proposed to reduce it indefinitely to 7.6% and reduce the income tax rate from 20% to 3%.

“This is undoubtedly a positive signal for the market. This is a serious preference, which speaks of certain expectations of the state related to the need for technological re-equipment”, Basov said.

According to him, the tax manoeuvre is not so much an anti-crisis measure as a demonstration that the IT industry is assigned the function of the main driver of economic development.

History of the issue

A tax break is an advantage that a state or local government gives to specific categories of persons, which puts them in a better position than taxpayers who are not eligible for the tax break.

Tax incentives for business entities are an instrument of tariff regulation of economic activity. For individuals, they have a social function. Providing taxpayers with incentives deprives the state of some of its tax revenues.

Benefits can be granted as tax exemptions when the beneficiary can exclude any property or income from the tax base. Tax credits make it possible for a taxpayer to deduct from a taxable profit a portion of the income that is used for a specific purpose. Typically, these goals are treated by the state as socially useful. Exemption from tax or part of it can be a reduction in the tax rate or tax salary, a deferral or instalment plan for the payment of tax, a refund or offset of previously paid tax.

In Russia, the Russian Federation’s Tax Code determines the size and procedure for granting tax benefits.

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