Small IT businesses of Tatarstan will be supported by tax benefits

RT Minister of Economy Farid Abdulganieyv proposed a bill with a list of new measures to support small businesses in the IT sector

 From January 1, 2020 to January 1, 2023, the Republic of Tatarstan plans to introduce preferential tax rates for organizations and individual entrepreneurs engaged in development of computer software, providing consulting services in this field and other related services, as well as conducting activities in the field of information technology (No. 62 and 63 according to All-Russian Classifier of Enterprises and Organizations, respectively): “income reduced by the amount of expenses” - in the amount of 5 percent, “income” - in the amount of 1 percent.

The corresponding bill was submitted to the RT deputies by the Minister of Economy of the Republic Farid Abdulganiyev during a meeting of the State Council of the Republic of Tatarstan. It provides a preferential treatment only for taxpayers applying the simplified tax system (STS) in cities of up to 7 thousand people. The last criterion in the republic meets only the city of Innopolis.

According to the results of the vote, the initiative of the Minister of Economy Farid Adbulganiyev was adopted by a majority of votes - 87 out of 88. The law on the simplified tax system was adopted by the State Council of the Republic of Tatarstan in three readings and is awaiting signing by the President of the Republic.

This step is a timely and effective measure of the Ministry of Economy of the Republic of Tatarstan within the framework of the strategy of support and protection of small and medium-sized businesses in the republic: it will help increase the number of IT companies that meet the preferential tax criteria in Innopolis, which should be 200, which, in turn, will give an additional 3,240 jobs and 1,178.9 million rubles of tax revenue. Such data are contained in an assessment document prepared by the Ministry of Economy of the Republic of Tatarstan. It is expected that the proposed measures will increase the investment attractiveness of the Innopolis special economic zone, create an influx of new residents and, in particular, start-up projects, which, taking into account all preferences, increase the chances of “kids” growing up in strong companies. This will contribute to the development of small and medium-sized enterprises in the region as a whole and will help Tatarstan remain in the status of one of the economic leaders of Russia.

The proposed solution has already been tested in several regions of Russia. Among them are the Tyumen, Belgorod and Ulyanovsk regions, as well as the Republic of Mordovia and the Kamchatka Territory. So, in the Ulyanovsk region the number of IT companies doubled during the period of benefits from 2016 to 2019.

By the end of 2019, 45 companies using STS were registered in Innopolis. The volume of tax revenues from these companies last year amounted to 185.69 million rubles.