Central regions | Finance, business

Russia ponders new incentives for IT sector

13 Jul '20
The Russian Government last week announced a new stimuli package to develop the IT sector between now and 2024, the USRBC reported, citing the Russian business daily Kommersant.

Earlier this summer a “tax maneuver” was proposed, reducing IT firms’ social security contributions from 14% to 7.6% and income tax from 20% to 3% while re-imposing a 20% VAT on certain IT products. The new program expands that to include $564.5m in grants for R&D and start-ups; developing Public Private Partnerships (PPPs) in “digital government”; and subsidies to Russian higher education institutions to triple the total number of IT students to 150,000.

By 2024, the program envisions a doubling of IT sector employment to 750,000 workers; a doubling in domestic demand for Russian IT products to $18.3bn per year; an annual increase in IT product exports to $9.9bn; and a doubling of the IT sector’s share in GDP to 2%.

Although the program declares a “priority for domestic IT solutions,” Prime Minister Mishustin did not mention any new restrictions on imports. He said the program would focus on creating Russia-based “global IT companies” through “localizing global solutions.” The program’s text has not been published yet.
Publish in Twitter
Write to Facebook
Google Buzz
Write to LiveJournal
Show in MM
Share MK
Find Related Content


Latest News: Central regions
13 Aug '20 | Technology & innovation
12 Aug '20 | Technology & innovation
11 Aug '20 | Technology & innovation
11 Aug '20 | Technology & innovation

Feature stories

23 Jul '20
21 May '20
Russian and Italian researchers have developed a...
5 Apr '20
To extend the service life of medical fabric masks—an...
Search (News archive - 22150)

World of the Future, World of AI

Luc Jones: A Guide to Doing Business in Russia and the CIS Countries
Why Russians Don't Smile
Marchmont News

Latest News

12 Aug '20
Dmitry Voloshin, a Russian tech entrepreneur, has...
10 Aug '20
PandaDoc, a developer of integrated software for doc...
4 Aug '20
Apple has taken over a fintech company that was...

Most read stories from last week

13 Aug '20
YUR-LI, a resident of the Information Technology...
14 Aug '20
As a resident of the Technopark LLC TESTIM is...