On June 20, Moscow Mayor Sergei Sobyanin sent proposals to State Duma Chairman Vyacheslav Volodin to adjust the provision of IT benefits for income tax, Vedomosti reported.
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What proposals did the Moscow authorities make?
- apply the profit to that portion of the profit that was not used to pay dividends in 2024,
- provide a benefit if the organization’s investments in intangible assets and fixed assets amounted to at least 30% of the profits benefited,
- Provide a benefit if the average salary in the organization is at least 120% of the average salary in the IT industry in the region.
The letter sent to Volodin speaks of adjustments to the bill on improving the tax system, which is currently being discussed in the State Duma.
On June 20, the State Duma adopted it in the first reading. The document proposes to extend the effect of a 0% rate on taxes going to the regional budget until 2025-2027, and to set a 5% rate on taxes going to the federal budget.
In his letter, Sobyanin notes that the zero tax rate, which has been in effect since 2022, is an important measure to stimulate investment in the IT industry, but the conditions for receiving benefits did not take into account the need to direct preferential profits to investments in the development of new technologies.
It should be noted that in 2023, IT companies received 56 billion rubles of benefits from the capital’s budget and paid dividends worth 49 billion rubles.
The remaining companies did not pay dividends, but generated retained earnings worth 259 billion rubles, “which can be used for dividends in future periods.”
Sobyanin notes that in most cases, the funds saved thanks to the benefits of information technology “were not intended for business development, but for paying dividends or accumulating profits.”
- As of the end of March 2022, there were 47,000 registered IT companies in Moscow (25% of all business in this area in the Russian Federation). The total annual turnover of Moscow IT companies is about 3 trillion rubles, or about 56% of the industry.
- As of May 2023, Kontur.Focus analysts counted 47,391 organizations, and in Russia, about 200,700.
Author:
Anastasia Marina
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
