Ministry of Digital Development, Communications and Mass Media of the Russian Federation proposed to provide tax incentives to “digital residents” who establish IT companies. Changes in legislation will also make it easier to attract IT specialists from other countries.
Digital residency already exists in some countries and thanks to it, adult individuals who are not citizens of the country and do not reside in its territory can receive a digital ID card and use it to register companies, work with banks, and pay taxes.
Important: digital residency does not provide residency and tax residency.
This step is part of the support for the IT industry. So, for example, in 2021, amendments to the Tax Code have already been entered. According to them, insurance premiums for IT companies were reduced from 14 to 7.6%, income tax rates – from 20 to 3%.
The government is developing other measures to introduce digital residency (source RBC):
- Expansion of incentives for taxation of intellectual property, IP Box mode
- Introduce amendments to the legislation governing the process of registration of remote work under an employment agreement from abroad.
- Develop and amend legislation on foreign exchange control, criminal and administrative legislation, establishing flexible rules for the work of IT companies with foreign counterparties.
