MOSCOW, July 17 (RAPSI) – The government of Russia has submitted to the State Duma a bill envisaging amendment of the Tax Code to the effect of establishing a favorable fiscal environment for the IT business.

The document was published on the database of the lower house of Russia’s Parliament on Friday.

According to the explanatory note attached to the bill, it is aimed at implementation of the measures introduced to aid the economy on the initiative of President Vladimir Putin. In late June the President proposed to undertake a fiscal maneuver in the IT industry; among other moves it envisaged an indefinite lowering of insurance payments rates for corporations from current 14% to 7.6%, whereas profit tax rates were to be reduced from 20% to 3%.

The bill envisages a 3% profit tax rate due to the federal budget and a zero rate of the same tax due to regional budgets for the IT industry.

The authors of the bill believe the proposed amendments will set for the IT business more favorable fiscal environment than that in India and Ireland, as the respective tax rates are planned to be among the lowest across the globe.

Moreover, since 2021 IT companies will indefinitely enjoy lower insurance payments rates at 7.6% (mandatory pension insurance at 6,0%, mandatory social insurance at 1.5%, and mandatory medical insurance at 0.1%).