The Russian Ministry of Finance proposed raising the profit tax rate for IT companies to 5%
The Ministry of Finance of the Russian Federation has prepared a draft law on changes to the tax system. Among other things, it proposed to replace the current zero profit tax rate for IT companies with a 5% rate.
According to TASS, which reviewed a copy of the draft law, the rate is planned to be increased starting January 1, 2025. If the initiative is approved, the 5% rate will be in effect at least until the end of 2027.
Let's recall, the reduced rate for IT companies has been in effect for four years. Initially, in 2020, it was lowered from 20% to 3%, and in 2022 it was temporarily set to zero, allowing companies not to pay profit tax until December 31, 2024. In March 2023, the Russian Ministry of Digital Development proposed to permanently zero out the rate, but it seems the idea was not supported.
