Tax advice for IT companies
- Consultations on eligibility for incentives, their amounts, and procedures
- Accreditation with the Ministry of Digital Development of the Russian Federation
- Legal procedures for inclusion in the Russian software registry
- Verification of compliance with the criteria for IT company accreditation and inclusion in the Russian software registry
- Monitoring of compliance with the criteria for receiving incentives
Our services:
- Accreditation with the Ministry of Digital Development
- Inclusion in the Russian Software Registry
- VAT
- Income Tax
- Insurance contributions
Accreditation with the Ministry of Digital Development
Accreditation Process
Before the accreditation process begins, you must submit a consent form authorizing the disclosure of information constituting tax secrets to the Federal Tax Service of Russia via Gosuslugi, the Legal Entity Personal Account on the Federal Tax Service website, or through an electronic document exchange operator. The consent file in XML format can be generated using the “Taxpayer (Legal Entity)” software (version 4.79.4 or later) and submitted via the Legal Entity Account:
- Consent Form (Version 5.03 (KND 1110058) (Appendix No. 4 to Order No. ED-7-19/1085@ of the Federal Tax Service of Russia dated November 14, 2022))
To obtain accreditation, you must submit the following to the Ministry of Digital Transformation via the State Services portal (Accreditation of IT Companies):
- Application (form approved by Order of the Russian Ministry of Digital Development, Communications, and Mass Media No. 1172 dated December 15, 2025)
- Power of Attorney (MChD) for a representative employee (if applicable)
- Revenue statement from the company, signed by the CEO (in the form specified in Appendix No. 1 to Order No. 35 of the Russian Ministry of Digital Development, Communications, and Mass Media dated January 19, 2024)
- Extract from the startup registry https://i.moscow/startup_reestr (if applicable)
- Certificate of IT-related expenses issued by the company and signed by the CEO (if applicable) (in the form specified in Appendix No. 3 to Order No. 35 of the Russian Ministry of Digital Development, Communications, and Mass Media dated January 19, 2024)
Timeframe: Up to 15 business days
Our support
- Verification of the company’s compliance with accreditation criteria
- Preparation of documents
- Assistance with submitting documents to the Ministry of Digital Transformation
- Preparation of explanatory notes and supplementary documents (as needed)
- Obtaining an extract from the registry of accredited organizations
- Monitoring compliance with legal requirements to maintain accreditation and providing support in renewing accreditation—annually by June 1 (the application, revenue statement, and other documents, if necessary, are submitted through Gosuslugi)
Russian Software Registry
About the Registry
The Russian Software Registry was created for the following purposes:
- “expanding the use of Russian computer programs and databases,
- verifying their origin in the Russian Federation,
- and providing government support to the copyright holders of computer programs or databases”
(Article 12.1 of Federal Law No. 149-FZ dated July 27, 2006)
Timeframe: up to 65 days
Our support
- Verification of software and company compliance with the requirements for inclusion in the registry
- Consulting on registration documents
- Inclusion of the software in the Russian software registry
VAT
For Russian IT companies
- Starting in 2021, the sale of Russian software and databases (hereinafter referred to as “software and databases”) is exempt from VAT.
- To qualify for the VAT exemption, the software and databases must be entered into the Russian Software Registry.
- The VAT exemption applies to the entire supply chain: vendor—distributor—integrator (Federal Tax Service Letter No. SD-4-3/20902@ dated December 18, 2020).
- Technical support services, as well as services for troubleshooting and resolving malfunctions and failures, are exempt from VAT only if their cost is not itemized separately in the price of the contract granting rights to the software
Исключения: ПО и БД для поиска продавцов и покупателей, рекламы товаров и заключения сделок не освобождаются от налогообложения НДС даже если включены в реестр российского ПО.
For foreign IT companies
If the software is not included in the Russian software registry, the company is required to pay VAT. Possible scenarios:
- If a foreign company provides electronic services to a Russian customer through a Russian or foreign intermediary, the intermediary is responsible for filing reports and paying VAT;
- If a foreign company directly sells software to a Russian buyer who is an individual, this is considered the provision of electronic services, and the foreign company is required to register with the Federal Tax Service, file VAT returns, and pay VAT;
- If a foreign company provides services in electronic form to a Russian organization, the buyer—the Russian organization—is considered a tax agent, withholds VAT from the payment to the foreign company, and pays the VAT to the Russian government.
Russian organizations that purchase electronic services from foreign companies are entitled to a deduction for withheld VAT, provided that they engage in activities from which they derive income subject to VAT.
Our upport
- Tax advice — support in dealing with the Federal Tax Service and identifying the best approaches for conducting business in the Russian Federation
- Accounting outsourcing— filing VAT returns
- VAT declarations and refunds
- FInancial functions outsourcing — financial management
- Audits under RAS, IFRS, and US GAAP
- Optimizing the risks associated with permanent establishments
Corporate income tax
For russian IT companies
Russian IT companies pay income tax at a general rate of 25%. A reduced rate (5%) applies if the following conditions are met:
- If accreditation is successfully reinstated following revocation, the income tax will be recalculated from the beginning of the current tax period.
- At least 70% of revenue for the reporting period was derived from IT-related activities.
Our support
Our attorneys and tax specialists can advise you on:
- regarding the criteria and procedures for calculating indicators
- regarding accreditation requirements and procedures
- regarding the application of tax incentives: period, calculation of the taxable base
- regarding the possibility of combining several special tax regimes (Simplified Tax System, Special Economic Zones, Skolkovo, etc.)
For foreign IT companies
Foreign companies may be taxed under the Tax Code of the Russian Federation or in accordance with international double taxation treaties. Foreign entities operating in the Russian Federation must take into account the risks associated with the establishment of permanent tax representative offices.
Our support
Our tax consultants can help foreign IT companies in Russia choose the optimal tax regime.
Insurance contributions
For russian IT companies
The eligibility requirements for these tax breaks are the same as those for income tax.
Preferential rates:
- 15% on payments not exceeding the maximum insurance contribution base;
- 7.6% on payments exceeding the maximum insurance contribution base.
Total payroll:
- with tax breaks—15% (and 7.6% on the excess);
- without tax breaks—30% (and 15.1% on the excess)
For foreign IT companies
There are no contribution incentives for foreign IT companies.
Leading positions
Konsu is one of the leading consulting companies in Russia. We have been included in the following ratings of the rating agency Expert RA:
- Top-10 in accounting outsourcing
- Top-10 in payroll outsourcing
- Top-15 in financial consulting
- Top-15 in legal consulting
Send message
Please describe your situation and we will find an optimal solution for your business.
info@konsugroup.com