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Executive Order on measures to boost IT industry in Russia

March 2, 2022

The President signed the Executive Order On Measures to Ensure the Accelerated Development of the IT Industry in the Russian Federation.

In order to ensure faster development of the IT industry, the President instructed the Government of the Russian Federation to allocate funds from the federal budget in annual aid to support promising IT solutions.

The Government was also instructed to allocate funds to accredited organisations involved in the IT industry to improve the living conditions of their workers and raise their salaries; and to ensure that these organisations can be provided with concessional loans at an interest rate under 3 percent for maintaining operations and implementing new projects.

The Government is also to take measures to establish a profit tax rate of 0 percent for accredited organisations until December 31, 2024, and to simplify the hiring of foreign nationals by these organisations and obtaining residence permits for such foreign nationals.

Additionally, the accredited organisations will be eligible for tax concessions and incentives. They will be exempt from tax control, foreign exchange control and other forms of state and municipal control for up to three years. The Executive Order also provides for consolidating and stimulating procurement of critical domestic IT solutions and technologies for state and municipal purposes and specific legal entities, as well as simplifying such procurement.

According to the Executive Order, Russian citizens employed by the accredited organisations will be exempt from compulsory military service until the age of 27, as long as they continue to work for the said organisations.

The Government was instructed to make respective legislative amendments as necessary.

March 2, 2022