Reduced tax rate

From 1 January 2013 to January 1, 2023 subjects of industry software products that meet the criteria established by law, may apply the tax rate on income tax of 5%. In comparison with the general rate of corporate income tax (currently 21% with a gradual reduction to 16% by January 1, 2012), this rate provides software products to business industries essential privilege.

Subjects of industry software products, which according to the law are entitled to the use of lowered income tax rates required to maintain separate accounting transactions related to the program products. Costs related to the implementation of the program of production (including amortization of fixed assets) are accounted for in a separate accounting of the program products. General and administrative expenditure divided between accounting costs of operation associated with the program production and other operations of proportion to the share of income received by a certain kind of operations.

Requirements for use with lowered income tax rates:

• No less than 70% of profits from the sale of goods (services) is income from the program production.
• The initial value of fixed assets and intangible assets is not less than 50 minimum wages (about 50,000 USD.).
• The company has no tax debt.
• In relation to the company is bankrupt.

To use these tax credits an industry software products must contact their local tax office for special registration. Tax Inspectorate shall have the right to conduct tax audits to establish whether the subject of the criteria stipulated by the Law. If successful passage of verifying compliance with established criteria it will be issued a certificate of registration as a subject industry program activities.