3 Jun 2022 10:09

Russian ministry hopes for approval of tax breaks for electronics manufacturers in July

NIZHNY NOVGOROD. June 3 (Interfax) - Russia's Industry and Trade Ministry expects that changes to the Tax Code that will extend tax breaks previously approved for IT companies to electronics manufacturers will be passed before the end of July, Deputy Industry Minister Vasily Shpak told reporters on the sidelines of a digital industry conference in Nizhny Novgorod.

He said the bill has already passed the first review by the government's legislation commission and another review is expected soon, after which the document is expected to be submitted to the State Duma.

"I think that we could easily see this in the middle of the summer, before the end of July...Electronics companies, developers of components will get the same tax breaks as IT companies in that bill of changes to the Tax Code," Shpak said.

IT companies accredited by the Digital Development Ministry are eligible for a number of tax breaks, including a reduced profit tax rate of 3% on the portion paid to the federal budget and zero on the portion paid to regional budgets, and a reduced social security contribution rate of 7.6% instead of 14%.