Social benefits wouldn't trigger the desolation of IT-companies

12.10.2010

In 2011, the expected increase in general rates of payments for pensions, compulsory health and social insurance in the Russian Federation from 26 to 34%. This significant increase in tax burden may negatively affect the companies in which labor costs account for up to 80% of the total cost. First of all, it concerns IT-companies. 
In order to reduce the tax burden on these companies of the State Duma passed a bill on the introduction of a preferential 14 percent rate of insurance payments to non-budget funds for IT-companies. Action preferential rates apply to the period - from January 1, 2010. The privilege applies to the Russian organizations engaged in the development and implementation of computer programs, databases on physical media or electronic communication channels. The key conditions of receiving benefits will be the availability of state accreditation with the Ministry of Communications, the share of proceeds from the sale of programs of at least 90% of revenue and number of staff at least 50 people. 
Rate of 14% for IT companies will continue until 2018, then increased to 21%, and in 2019 - up to 28%. The overall rate of 34% of these companies will come only in 2020.