b e i t e n b u r k h a r d t i n t e r n a t i o n a l l a w f i r m recent changes to the federal...
TRANSCRIPT
B E I T E N B U R K H A R D TB E I T E N B U R K H A R D TI n t e r n a t i o n a l L a w F i r mI n t e r n a t i o n a l L a w F i r m
Recent changes to the Federal legislation concerning IT-related businesses
September 18, 2007St. Petersburg, RUSSIA
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Overview of IT-companies taxation changes
General features
Export-oriented regulations in 2005-2006
Special requirements for IT-companies
Lack of government and local regulations
2005
Federal Law No. 116-FZ dd July 22, 2005 “On
special economic zones”
Federal Law No. 119-FZ dd July 22, 2005
changed in particular the Article 148 of the Tax Code concerning VAT
The resolution of the Supreme Arbitration Court No 2617/05 dd
August 02, 2005 regarding software
export
2006
Federal Law No. 144-FZ dd July 27, 2006 established the
preferential rates of the Unified Social Tax and
Property Tax for IT-companies
2007
Federal Law No. 195-FZ dd July 19, 2007 established the
preferential conditions for IT-companies
regarding VAT, CPT, application of the special
tax regime
com
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2006, 2007
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2007
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2007, 2008
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Contents of the changes and the tax legislation (2005)
Details of legal act Contents Comment and implication
Federal Law No. 116-
FZ dd July 22, 2005
“On special economic
zones”
Established tax preferences for companies
registered in technological development
zones:
Special rates of the Unified Social Tax
(maximum rate is 14%);
Property tax remission for a 5-year period.
The procedure of registration in special technological
development zones is complicated. Therefore, tax
preferences receiving is hindered.
Federal Law No. 119-
FZ dd July 22, 2005
changed in particular
the Article 148 of the
Tax Code concerning
VAT
The Article 148 of the Tax Code of the
Russian Federation was revised and
enlarged, in particular:
- services including software and database
modification, adaptation and development are
VAT taxable, if a buyer of such services runs
business operations in the Russian
Federation.
The question concerning taxation of software development
under the order of foreign customers was partly clarified.
The resolution of the
Supreme Arbitration
Court No 2617/05 dd
August 02, 2005
regarding software
export
Software sales are not recognized as an
export operation
The question concerning taxation of the software
development under the order of foreign customers was
partly clarified.
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Contents of the changes and the tax legislation (2006, 2007)
Details of legal act Contents Comment and implication
Federal Law No. 144-FZ dd July 27, 2006 changed in particular
the Articles 241 and
259 of the Tax Code of
the Russian Federation
Established tax preferences for IT-companies, in particular:
-special rules to calculate the Unified Social Tax rates (maximum
rate is 26%);
-permission to depreciate electronics and computer hardware.
IT-companies should fulfill conditions to
receive the State registration certificate.
But the Government has not issued the
above-mentioned regulation yet.
Therefore, tax preferences application is
impossible.
Federal Law No. 195-
FZ dd July 19, 2007
changed the Tax Code
The Tax Code of the Russian Federation was revised and
enlarged, in particular:
-Art. 149: enlarged free of VAT transactions list (R&D, IP-rights
transfer, know-how, rights granted under license agreements);
-Art. 251: funds received from Science and technology support
funds are not recognized as an income for CPT purposes;
-Art. 259: A possibility for accelerated depreciation of fixed
assets which is applied for R&D;
-Art 346.16: enlarged the expenses list recognized for the
purposes of the Simplified Taxation System (IP-rights, know-
how, R&D purchasing costs).
The changes in the Tax Code of the Russian
Federation stimulates IT-industry
development on the internal markets.
Above-mentioned changes provide
preferences not only for middle-size and
large-size companies but also for small
entrepots.
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Contacts
Mr. Victor Naumov
Partner
BEITEN BURKHARDT, St. Petersburg E-Mail: [email protected]
Ms. Anna Afanasyeva
Attorney-at-law
BEITEN BURKHARDT, St. Petersburg E-Mail: [email protected]
Nevsky prospect 140, 191036 St. Petersburg, Russia
Phone: +7 812 449 60 00, Fax: +7 812 449 60 01
www.beitenburkhardt.com
Thank you for your attention!Thank you for your attention!