Small, But Many: The Share of Small Business in the Software Export Grows

Nov 18 2014

The share of foreign sales of Russian software in total exports continues to increase and by the end of 2013 exceeded 1%.

IT Trade May Suffer if Benefits Not Extended

Jul 17 2013

Russia’s Deputy Prime Minister Arkady Dvorkovich said that the country’s IT trade may begin to suffer if the state does not extend preferential benefit schemes. He made the statement at a cabinet meeting on Monday, RIA Novosti reported.

Tax Breaks Take Center Stage

Julia Voronina
Rossiyskaya Gazeta

TaxesRussia’s Ministry of Communications is considering extending privileged tax rates for IT companies until 2020.

Russia’s privileged tax rate for the IT industry is currently set at 14 percent, as compared to the general rate of 30 percent. In order for a company to qualify for the reduced rate in salary taxes and social-security contributions, the firm must apply to the Ministry of Communications and be accredited. At the moment, this benefit is extended to 37 percent of the industry as a whole.

New Changes to Russian Transfer Pricing Law

Alexander Ermakov
Awara Group
Director of ERP Systems Unit

Monday, May 14, 2012
In an exclusive article for Software Russia, Alexander Ermakov, Director of Awara Group’s ERP Systems Unit, sets out in detail what anyone considering cross-border transactions with Russian companies needs to know. With transfer pricing being a significant component to both determine and justify the prices a company charges for a service, recently enacted Russian legislation is a significant influence on the country’s software development industry…

Pavel Adylin on Changes in Russian Taxation Law

Pavel Adylin

Wednesday, December 7, 2011

Reducing the required number of employees a company needs to qualify for concessions to 30 will allow small- and medium-sized businesses to survive, despite the generally negative changes in the tax laws this year… A number of companies, particular Artezio, are trying to expand their geographic distribution by opening offices outside Moscow and St. Petersburg.

Dmitry Chikhachev on Changes in Russian Taxation Law

Dmitry Chikhachev
Runa Capital
Managing Partner

Monday, December 5, 2011

This is a very positive change and I would welcome even further reduction of this threshold—down to 10 to 15 employees—so that a company above the threshold level would benefit from a SW-developer tax exemption and a company below, from the simplified tax regime for small businesses. SW development may become a strategically important sector of the Russian economy—Russian programmers and Russia-made software products already have reputation worldwide and it is getting stronger.

Valentin Makarov on Changes in Russian Taxation Law

Valentin Makarov

Monday, December 5, 2011

The main thing about the new legislation (amendments to Article 212) is the continuation of the 14 percent social tax rate and non-applicability of an additional 10 percent payment to accredited IT companies. Diminishing the number of personnel from 50 to 30 is not that crucial from the point of view of the majority of businesses concerned. It primarily means that the industry is strong enough to see positive results from its lobbying activity where questions of justice, rather than money, are concerned.


Ulf Schneider
Russia Consulting
Managing Director

Friday, June 17, 2011
The laws that direct the collection of tax by the government are accumulated in Russian Tax Code (except Social taxes which are established by separate Federal law). However, the Russian tax legislation is in a constant state of flux. Trestle Group strongly recommends the engagement of an international tax advisor with specific work experience in Russia. More...

Doing IT business in Russia / Taxation

As with most countries, the laws that direct the collection of tax by the government are in a constant state of flux. The Russian Tax Code is no different and this has significant bearing on Russian outsourcing and the options that exist for Russian software development businesses. This section outlines the government’s various levies on economic transactions including those applying to ISVs and outsourcing vendors...
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