The Ministry of Digital Development proposed a preferential mortgage and a deferment from conscription for IT specialists

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The Ministry of Digital Development proposed preferential mortgages, deferment from conscription and other measures for IT specialists

The Ministry of Digital Development has prepared a package of measures that should keep IT specialists in Russia. Among them are preferential mortgages and deferment from conscription for the duration of work, tax cuts and others.

Photo: Vladimir Smirnov / TASS

The Ministry of Digital Development proposed to the government a package of 10 measures to keep software developers in the country and develop IT companies. This follows from a letter from the head of the ministry, Maksut Shadayev, to Prime Minister Mikhail Mishustin (RBC has a copy, a representative of the Ministry of Digital Development confirmed that the list of measures available to RBC is correct).

The list includes the following measures:

  • extend existing tax incentives also to IT companies that receive income from advertising, provision of additional services in their applications and online services, or implementation, installation, testing and maintenance of partner domestic IT products;

  • exempt for the next three years all employees of IT companies from paying personal income tax, and the companies themselves from paying income tax, as well as from inspections by regulatory authorities;

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Vladimir Putin

  • provide all employees of IT companies with a preferential mortgage at a rate of 5% for the duration of work;

  • provide a deferment from military service for employees of IT companies for the duration of their work in these companies;

  • introduce a simplified procedure for obtaining a work permit and a residence permit for foreign citizens hired to work in Russian IT companies;

  • provide IT companies with grants for the development and development of IT products (reducing the requirement for mandatory extra-budgetary co-financing of projects to 20%, and in some cases to 0%), develop a program of concessional lending for the implementation of domestic solutions at a rate for the borrower of 1% (participating banks programs up to 100% of the key rate will be compensated by the Bank of Russia);

  • ensure accelerated import substitution of software at critical information infrastructure facilities through targeted budget financing through the sectoral competence centers being created;

  • introduce preferential lending to IT companies to ensure uninterrupted current activities;

  • consolidate and stimulate government orders, including from state companies, to finance new critical developments (PLM, ERP, etc.) with the possibility of their execution by large IT companies without holding tenders and auctions (bidding);

  • provide targeted funding for the creation in Russia of a “mirror” of the GitHub open source software repository.

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