IT manufacturers in Russia quickly raised prices due to new taxes – media

Experts predict that prices may start rising faster in the third quarter, reports The Moscow Times.

Prices for IT market products in Russia in the first five months of 2024 increased by 15-20% compared to last year. This was reported by The Moscow Times.

The increase in cost affects all products, but if “boxed” software has become more expensive mainly from large companies, then the price of developing software from scratch has been raised by everyone.

Experts predict that in the third quarter, prices may begin to rise faster as companies benefiting from incentives begin to adjust their pricing to the 5% corporate tax rate refund from 2025.

By 2023, the value of information security solutions will increase by an average of 15%. However, there was a group of vendors who raised prices by 30%, the media said.

After the start of Russia’s large-scale invasion of Ukraine, which resulted in sanctions and a mass flight of programmers, Russian IT companies were actually exempted from the income tax, reducing the rate until the end of 2024. In specifically, it used to be 3% – it was made this way in 2020 instead of the usual 20%.

Russian software developers now do not pay value added tax (VAT), and insurance premium rates for them have been lowered to 7.6%.

The State Duma of the Russian Federation earlier approved in first reading a package of amendments introducing the largest tax increase in Russian history.

We remind you that it was previously reported that Microsoft and Amazon will close access to their cloud services in the Russian Federation.

Moscow says Microsoft is “damaging Russia”

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