Participants of the Research & Development activities will receive tax benefits

The State Duma adopted in third reading a draft law that reduces the income tax payments for enterprises and organizations involved in research and development (R & D).

The Act supplements the list of incomes that are not taken into account in determining the tax base for profits, the proceeds of intellectual property rights found during the inventory of property and property rights. This rule will apply to property rights identified since January 1, 2017.

A list of costs for keeping the staff involved in R&D activities is also expanding. The costs will include the incentive measures, such as performance awards, tariff and salary increments for professional achievements, and other similar indicators, as well as insurance premiums. It is also suggested to refer the cost of intellectual property rights to the costs for which the coefficient 1.5 is applied for the purposes of profit tax, but only in case they are used for R&D.

In addition, the bill also introduces the norms which simplify tax administration. According to the document, the taxpayer is entitled not to submit the tax report on the performed R&D (separate stages of work) in the event that the report is placed in a single state information system.