Developers of military and dual-use programs are proposed to be exempt from VAT, reports Vedomosti with reference to the draft law of the Ministry of Finance. The transfer of rights to use said programs and databases will also be exempt from paying taxes.
Currently, as part of the tax maneuver in the IT industry, software developers from the Russian software registry maintained by the Ministry of Digital Development are exempt from VAT. However, this exemption does not apply to computer programs and databases related to guaranteeing the defense and security of the country.
This is due to the fact that it is prohibited to include in the unified registry of Russian software information that can be classified as a state secret, explains the document from the Ministry of Finance.
The bill is scheduled to be submitted to the government in October and to the State Duma in February 2023.
A Vedomosti source in the defense industry believes such amendments are most relevant to manufacturers of various automatic control systems, which often outsource software development.
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