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State IT Companies to Receive Tax Benefits
Economics

State IT Companies to Receive Tax Benefits

The Ministry of Digital Development proposes tax incentives for state-owned IT companies developing market-wide solutions to retain talent and unify standards.

Kommersant5d ago
2 min read
📋

Quick Summary

  • 1The Ministry of Digital Development has proposed a significant policy change to grant tax incentives to state-owned IT companies.
  • 2Currently, these entities are excluded from benefits available to accredited private firms to prevent the development of incompatible internal products and market fragmentation.
  • 3The new proposal aims to support state-owned companies that develop software and databases for state information systems, critical infrastructure, and pre-installed smartphone applications.
  • 4Additionally, the plan includes allowing IT-related government bodies to undergo accreditation.

Contents

Proposed Tax Incentives for State ITEligibility Criteria and ScopeAccreditation for Government BodiesStrategic Impact on the Market

Quick Summary#

The Ministry of Digital Development is proposing to extend tax benefits to state-owned IT companies. These incentives are currently reserved for accredited private firms. The goal is to support developments that benefit the entire market rather than isolated internal systems.

The proposal specifically targets developers of software for state information systems and critical infrastructure. It also seeks to include government bodies in the accreditation registry to protect IT personnel.

Proposed Tax Incentives for State IT 📉#

The Ministry of Digital Development has put forward a proposal to provide state-owned IT companies with access to tax incentives. These benefits are currently strictly reserved for accredited private IT companies. The primary objective is to support the development of critical software solutions that serve the interests of the entire market.

Under current regulations, state-owned companies are excluded from these benefits. This exclusion exists to prevent the support of internal IT developments within state corporations. The concern is that such internal developments lead to product incompatibility and the fragmentation of the market.

Eligibility Criteria and Scope 🎯#

Despite the previous restrictions, the new proposal outlines specific conditions under which state-owned entities can receive these tax breaks. The benefits will be available to developers creating software and databases for state information systems (GIS) and particularly significant projects that serve the broader market.

Eligibility also extends to owners of software intended for pre-installation on smartphones. Furthermore, suppliers of solutions for critical infrastructure facilities will be included in the scope of these tax benefits.

Accreditation for Government Bodies 🏢#

In addition to tax incentives, the Ministry of Digital Development proposes a structural change to the accreditation process. The plan is to allow accreditation in the registry not only for companies but also for government bodies associated with IT.

The purpose of this expansion is to ensure that IT personnel working within the government receive the same level of protection as those in the private sector. By providing this status, the state aims to retain key personnel who are vital for the industry.

Strategic Impact on the Market 📊#

This initiative represents a shift in how the state approaches its internal technology development. By selectively offering tax relief, the government intends to align state-owned IT efforts with national market needs. This move is expected to reduce the fragmentation caused by disparate internal systems.

Ultimately, the proposal seeks to balance the need for unified market standards with the retention of high-skilled IT professionals within the government structure. It ensures that state resources are directed toward projects with widespread utility.

Frequently Asked Questions

They are excluded to prevent the support of internal developments that lead to product incompatibility and market fragmentation.

Software for state information systems, critical infrastructure, and pre-installed smartphone apps will qualify.

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