The Russian Ministry of Finance recently issued Guidance Letter No. 03-03-06/1/28535 on 29 March 2024, which sheds light on the conditions governing the application of a reduced corporate tax rate of 0% for IT companies utilising their own computer programs to offer services. This favourable rate falls under the “ultra-low tax regime” specifically designed for IT firms and was previously reduced from 3% to 0% during the period from 2022 to 2024.
Notably, certain conditions have been eased:
Eligibility Period: IT companies become eligible for the reduced rate starting from the reporting (tax) period in which they receive state accreditation as organisations engaged in information technology.
Revenue Threshold: To qualify for the reduced rate, the company’s revenue from its computer programmes, databases, exclusive rights transfers, licensing, etc, must constitute at least 70% of its total revenue during the reporting (tax) period.
Inclusion in Register: The relevant proprietary computer programme, databases, or components of a proprietary computer programme must be included in the unified register of Russian programmes for computers and databases.
