Putin proposed to reduce the income tax for IT companies to 3%

Some good news. Vladimir Putin announced serious tax and insurance breaks for Russian IT companies. According to him, now the conditions will be even better than in Ireland.

We are talking about the following changes for IT companies, which are also considered gaming:

• reduction of interest on insurance premiums from 14% to 7.6%;
• reduction of income tax from 20% to 3%.

According to our colleagues from The Bell, after the announcement, shares of Russian companies immediately jumped. For example, papers Mail.Ru Group on the London Stock Exchange rose in price by 9.61%.

In an interview with Vedomosti, Alexander Tokarev, director of KPMG‘s tax and legal consulting department, noted that such a measure “will make the tax level comparable to the conditions in Cyprus — there is a rate of 2.5%.”