Russia imposes new measures to support local IT companies

The Russian Federation continues to introduce different measures in response to the sanctions imposed by the EU, UK, US and other countries on Russia. One new key regulation was adopted to address the economic impact of such sanctions against Russia on March 2^nd 2022.

On this date, RF President Vladimir Putin enacted Decree No. 83 “On Measures to Ensure the Accelerated Development of the Information Technology Industry in the Russian Federation”. According to this new decree, Russian companies preforming activities in the sector of information technology and which have been accredited by the Russian Ministry of Digital Development, Communications and Mass Communications, have been granted several tax incentives. 

Specifically, these Accredited IT Companies may now receive favorable loans at interest rates not exceeding 3% in order to continue their activity and for new projects. In addition, these companies are now exempt from paying income tax up till December 31^st 2021 and therefore their income tax rate will be 0% during this term. Also, these companies are now eligible to go through a simplified procedure for hiring employees from foreign countries and are exempt from regulatory authorities’s inspections for a term of three years. More information on these new measures aimed to relieve the aforementioned economic impacts (adopted March 2^nd 2022) can be found here (in Russian).