On 1 February 2023, the Ministry of Finance (MoF) of Russia published a Guidance Letter 03-03-06/1/5102 clarifying the application of tax incentives in the IT sector, that reducing the corporate income tax rate and social security contributions.
If a company in the Russian IT industry earns at least 70% of its total revenue from selected IT activities, it can enjoy a corporate income tax rate of 0% and a social security contribution rate of 7.6%. Russian IT companies can qualify for the 0% corporate income tax rate and 7.6% social security contribution rate if they provide services using their own computer programs, as well as databases that are included in the unified register of Russian computer programs and databases. Additionally, companies can qualify by engaging in activities such as distributing advertising information on the internet or providing access to such information.
