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

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.

• Type:

  • Treatment and operation (Corporate taxation)
  • Promotion and facilitation (Investment incentives)

• Industry:

  • Not industry specific (SDG)
  • Services (Accommodation and food service activities, Telecommunications, Computer programming, consultancy and related activities)

• Sources:

  • pravo.gov.ru , Федеральный закон от 26.03.2022 № 67-ФЗ "О внесении изменений в части первую и вторую Налогового кодекса Российской Федерации и статью 2 Федерального закона "О внесении изменений в часть вторую Налого, http://publication.pravo.gov.ru/Document/View/0001202203260011, 26 Mar 2022
  • Lexology, Russia cuts hotel VAT to zero, https://www.lexology.com/library/detail.aspx?g=603e2751-c098-4c55-921c-96e51495defc&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+General+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2022-04-04&utm_term=, 30 Mar 2022