Russia has recently enacted Federal Law No. 166-FZ on 28th April 2023, which brings changes to the provisions introduced in August 2021 regarding regional corporate tax rates for income derived from the licensing of intellectual property (IP) in Russian regions. The key amendments focus on the eligibility criteria for certain types of IP, including inventions, utility models, and industrial designs. These types of IP can now qualify if they are certified by patents issued by the Russian federal executive authority for intellectual property, patents that are valid in Russia according to international treaties, or patents issued by authorized bodies of foreign states or intergovernmental organizations. The specific list of authorized bodies will be determined by the Russian government.
Previously, the original provisions stated that eligible IP had to be registered with the Russian federal executive authority for intellectual property. However, the new law expands the scope of eligible IP to include plant variety rights certified by patents issued by the Russian federal executive body for plant varieties, as well as computer programs, databases, and integrated circuit designs registered with the Russian federal executive authority for intellectual property.
Federal Law No. 166-FZ will come into effect one month after its official publication, but no earlier than the first day of the next tax period for corporate income tax, which is 1st January 2024.
