The tax burden of foreign companies in the field of information technology is planned to be increased

The Ministry of Digital Development of the Russian Federation has taken the initiative to oblige foreign IT-companies to pay personal income tax on the salaries of staff members employed in Russia.

This measure is proposed as a way to equalize the business conditions of Russian and foreign companies. It is expected that the relevant legislative amendments will be prepared by mid-2021.

Why is this measure being introduced?

• to increase the number of citizens engaged in IT-activities;
• to increase the flow of funds to the state budget;
• to equalize the status of foreign and domestic entrepreneurs.