Russian Federation

Russian Federation

Sets a VAT rate of 0% on hotel services and a CIT rate of 0% for IT companies

26 Mar 2022

On 26 March 2022, the Government amended the Tax Code by adopting Federal Law No.67. Among the most significant changes are the following: - The Government cuts the VAT rate to 0 per cent for lease or other use of tourism industry facilities for 5 years, and for accommodation services till 30 June 2027. The changes become effective on 1 July 2022.
- For IT companies, the Government reduced the CIT rate to zero for 2022-2024. The new rate has a retroactive effect and will apply to companies starting from 1 January 2022.

Nature of measure:
  • Incentives
Type:
  • Promotion and facilitation (Investment incentives)
Industry:
  • Services (Accommodation and food service activities, Telecommunications, Computer programming, consultancy and related activities)
Inward FDI:
No
Outward FDI:
No
Sources: