Module II·Article III·~1 min read
Tax Regimes for IT and Innovative Companies
Corporate Taxation
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Special Regimes for IT in Russia
Since 2021, Russian IT companies have received substantial benefits (if more than 70% of revenue comes from software and the company is accredited):
Profit tax: 0% for organizations developing and distributing software (until 2025, after which 5% is planned).
Social insurance contributions: 7.6% (instead of 30%).
VAT: exemption from VAT when selling rights to software included in the register of Russian software.
Additionally: preferential loans for digitalization, subsidies for development.
R&D Benefits: Tax Incentives for Innovation
Russia: R&D expenses are recognized at the actual amount with a coefficient of 1.5 (i.e., 1 ruble of expenses reduces the base by 1.5 rubles) if the project meets the list of critical technologies.
International experience: United Kingdom — R&D Tax Credit: SMEs can deduct 130% of expenses (plus) or receive a cash refund. France — Crédit d'Impôt Recherche (30% of R&D expenses). Singapore — 250% deduction for the first $400,000 of R&D expenses.
Patent Box
Preferential regime for IP income: United Kingdom (10%), Netherlands (9%), Luxembourg (5%). Stimulates companies to register IP in a preferential jurisdiction. BEPS Action 5 limits: the benefit is only for IP created in this jurisdiction.
Practical Assignment
An IT startup (an accredited IT company) plans to enter the EU market. Compare: (1) Operating through a Russian legal entity (exporting SaaS). (2) Establishing a subsidiary company in the Netherlands with a “patent box.” (3) Opening a company in Cyprus. For each option: tax burden, availability of incentives, regulatory requirements.
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