Tax maneuver in the IT sector: changes in 2021. Introduction of a tax deduction tool. Stimulation of import substitution and purchases of domestic software, HSS and computer equipment.
The Government is considering proposals to amend the Tax Code of the Russian Federation, which will include the cost of introducing domestic software (software), software and hardware systems (HSS) and computer equipment included in the Unified Register of Russian Programs, as well as a tax deduction for income tax in the unified register of radio electronic products of Russia.
The introduction of a tax deduction tool will require amendments to the laws of the constituent entities of the Russian Federation specified in the draft document, Vedomosti reports.
The measure is aimed at stimulating import substitution and purchases of domestic software, PAC and computer equipment, a representative of the Ministry of Digital Sciences explained. At present, the concept of this event does not indicate any restrictions on potential participating companies to which this tax credit may apply.
The general income tax rate in Russia is 20%. An investment tax deduction is a special tool for reducing the tax burden on income tax, that is, the calculated income tax is reduced by the amount of expenses or by a part of expenses. In other words, this type of tax deduction does not reduce the income tax calculation base, but the calculated tax itself.
Given that the Tax Code does not establish a minimum tax that must be paid to the federal budget after applying the investment tax deduction, income tax may not be paid at all if the amount of expenses exceeds the amount of income tax.
The investment tax deduction is introduced by the law of the subject of the Russian Federation and, as a result, the circle of taxpayers and the amount of withholding can vary greatly from region to region. The investment tax credit can be a beneficial tax planning tool for profitable companies.
Theoretically, if the deduction is greater than the tax, then it can be transferred to the next financial period, but it is also important to take into account the conditions for its application, which are established by each specific subject of the Russian Federation. In this situation, a tax deduction up to a predetermined amount will be granted.
The state already has several tools to support the sale of Russian software and hardware. Various subsidies for the purchase of domestic software and equipment have been working for a long time. For example, Decree of the Government of the Russian Federation No. 1598 on preferential lending to companies, where one of the conditions is that the cost of acquiring domestic equipment and software in total must be at least 60%.
As part of the tax maneuver, incentives for developers are already in place, which are included in the first package of measures to support the IT industry, adopted in June 2020. For example, insurance premiums for software development companies have been reduced from 14% to 7.6%, and income tax from 20% to 3%.
The support measures discussed in the second package include, for example, creating conditions for hiring and moving (returning) IT professionals and companies to Russia, as well as a ban on planned control and monitoring measures in relation to IT companies.
The share of domestic software products and equipment on the Russian market in the coming years will increase due to a number of measures, the most ambitious of which will be the issuance of a presidential decree on the transfer of structural objects of information infrastructure, communication networks, etc. The project sets the deadline for the transition to domestic software until January 1, 2023, and to Russian equipment - until January 1, 2024.
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