The Department of Tax Policy of the Ministry of Finance of the Russian Federation in a letter dated November 11, 2024 N 03−03−06/1/111 077 reviewed the application of tax incentives by IT companies, 100% of which are owned by foreign legal entities. Acsour experts commented on the Letter from the Ministry of Finance of the Russian Federation and highlighted the main point.
1. According to clause 1.15 of Article 284 of the Tax Code of the Russian Federation, a 0% income tax rate is set for Russian IT companies in 2022−2024. This benefit begins to apply from the beginning of the tax period for obtaining state accreditation.
The legislator clarifies that the application of this rate is possible if, according to the results of the reporting period, the amount of the company’s income, which is taken into account when determining the corporate income tax base, consists of at least 70% of the income specified in paragraph 1.15 of Article 284 of the Code.
2. According to Clause 5 of Article 427 of the Tax Code of the Russian Federation, mandatory conditions for Russian IT companies to apply a single reduced insurance premium rate of 7.6% are:
Acsour experts remind you that the income specified in clause 1.15 of Article 284 and clause 5 of Article 427 of the Tax Code of the Russian Federation includes income earned using proprietary computer programs and databases, including those developed, modified and adapted by a person belonging to the same group of persons with this IT organization. These articles of the Tax Code of the Russian Federation also define persons who belong to the same group of persons with an IT organization: for example, it is stipulated that such a person
3. Starting from January 1, 2025, according to Federal Law No. 259-FZ dated 08.08.2024 "On Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation on Taxes and Fees", a person belonging to the same group of persons with an IT organization cannot be a foreign organization or a foreign citizen or a stateless person.
Moreover, the letter states that from 2025, the share of income required to receive benefits will not include income earned using programs for electronic computers, databases that are developed, adapted and (or) modified by a foreign organization, including one participating in this IT company in the share more than 50% (with the exception of a foreign organization controlled by a Russian legal entity or citizen).
Acsour experts note that despite the innovation, the legislator does not provide for the impossibility of applying tax benefits to IT companies, 100% of which are owned by foreign legal entities.
Rapid changes in the rules of taxation may involve a number of risks for taxpayers. Our specialists have extensive experience in the field of tax law and will be glad to help your company operate in accordance with current legislation.
1. According to clause 1.15 of Article 284 of the Tax Code of the Russian Federation, a 0% income tax rate is set for Russian IT companies in 2022−2024. This benefit begins to apply from the beginning of the tax period for obtaining state accreditation.
The legislator clarifies that the application of this rate is possible if, according to the results of the reporting period, the amount of the company’s income, which is taken into account when determining the corporate income tax base, consists of at least 70% of the income specified in paragraph 1.15 of Article 284 of the Code.
2. According to Clause 5 of Article 427 of the Tax Code of the Russian Federation, mandatory conditions for Russian IT companies to apply a single reduced insurance premium rate of 7.6% are:
- obtaining state accreditation of the organization;
- the amount of the company’s income, which is taken into account when determining the corporate income tax base, consists of at least 70% of the income specified in paragraph 5 of Article 427 of the Code.
Acsour experts remind you that the income specified in clause 1.15 of Article 284 and clause 5 of Article 427 of the Tax Code of the Russian Federation includes income earned using proprietary computer programs and databases, including those developed, modified and adapted by a person belonging to the same group of persons with this IT organization. These articles of the Tax Code of the Russian Federation also define persons who belong to the same group of persons with an IT organization: for example, it is stipulated that such a person
- directly participates in the organization
- in which the organization is directly involved
- in which a third party is directly involved in this organization, and the share of participation in all cases is more than 50%.
3. Starting from January 1, 2025, according to Federal Law No. 259-FZ dated 08.08.2024 "On Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation on Taxes and Fees", a person belonging to the same group of persons with an IT organization cannot be a foreign organization or a foreign citizen or a stateless person.
Moreover, the letter states that from 2025, the share of income required to receive benefits will not include income earned using programs for electronic computers, databases that are developed, adapted and (or) modified by a foreign organization, including one participating in this IT company in the share more than 50% (with the exception of a foreign organization controlled by a Russian legal entity or citizen).
Acsour experts note that despite the innovation, the legislator does not provide for the impossibility of applying tax benefits to IT companies, 100% of which are owned by foreign legal entities.
Rapid changes in the rules of taxation may involve a number of risks for taxpayers. Our specialists have extensive experience in the field of tax law and will be glad to help your company operate in accordance with current legislation.
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