Russia Passes New Legislation on Benefits for Small IT Firms
The new law lowers the threshold for the number of employees IT companies need to qualify for benefits and also corrects a condition with income associated with fluctuations in foreign exchange rates
Dec 26, 2013
Russia’s Ministry of Communications and Mass Communications reported that the amendments the agency proposed to Article 57 of the federal law "On insurance premiums for the Pension Fund of the Russian Federation, the Social Security Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund" have been adopted in their third and final reading by the legislature on Dec. 20.
The Ministry of Communications prepared the bill as part of its scheme to provide a favorable business environment for Russian IT companies, and complies with the provisions of the "Strategy for the development of the information technology industry in the Russian Federation for 2014-2020 and through 2025."
As noted, the bill concerns existing benefits. Previously, IT companies that employed at least 30 workers were eligible for accreditation by the Russian Ministry of Communications to qualify for reduced social security premiums at a rate of 14 percent. These benefits were to be in full effect until 2017.
The new ammendment changes the threshold number of employees at companies applying for benefits from 30 to 7 people.
"In the vast majority of the Russian regions, an IT company with 30 or more employees is already a significantly large player. At the same time there are not enough incentives for the development of small IT businesses, which create a large share of innovations," said Deputy Minister Mark Shmulevich speaking before the new amendment was signed into law.
The Ministry of Communications prepared the bill as part of its scheme to provide a favorable business environment for Russian IT companies, and complies with the provisions of the "Strategy for the development of the information technology industry in the Russian Federation for 2014-2020 and through 2025."
As noted, the bill concerns existing benefits. Previously, IT companies that employed at least 30 workers were eligible for accreditation by the Russian Ministry of Communications to qualify for reduced social security premiums at a rate of 14 percent. These benefits were to be in full effect until 2017.
The new ammendment changes the threshold number of employees at companies applying for benefits from 30 to 7 people.
"In the vast majority of the Russian regions, an IT company with 30 or more employees is already a significantly large player. At the same time there are not enough incentives for the development of small IT businesses, which create a large share of innovations," said Deputy Minister Mark Shmulevich speaking before the new amendment was signed into law.