IT companies in Russia to be exempt from income tax for 3 years: PM Mishustin

Russian Prime Minister Mikhail Mishustin announced on Wednesday that all IT companies in the country would be exempt from paying income tax for the next three years. He also said they would be remaining free from inspections, too, during this period of time.

Moscow: All Information Technology companies in Russia will be exempt from paying income tax and free from inspections for three years, Prime Minister Mikhail Mishustin announced on Wednesday, as the West stepped up economic sanctions on Moscow for its invasion of Ukraine.

Western countries led by the United States have imposed a series of economic sanctions on Russia designed to punish the country for invading neighbouring Ukraine. Western leaders hope the unprecedented measures will bring about a change in thinking in the Kremlin.

The Kremlin has asserted that it has enough resources to weather the sanctions. In recent days, the Russian Cabinet has taken a number of steps to prop up the Russian economy.

All IT companies will be exempt for three years from paying the income tax and from inspections by oversight bodies; they will be able to borrow for continuation of operations and new projects at a rate capped by 3%, the official TASS news agency quoted Mishustin as saying at a Cabinet meeting.

Employees of IT companies will also have an opportunity to receive subsidized mortgage and the military deferent, Mishustin added.

PTI