The State Duma adopted the so-called “on Google tax”

The bill has received in the press sonorous name “on Google tax” was adopted in the third reading, the State Duma yesterday, June 15. The law introduces significant adjustments in the formation of the cost of the goods and services of foreign IT-companies working in the Russian Federation remotely.

The essence and purpose of the new law - equal rights and taxation schemes of Russian and foreign IT-companies. This, in particular, on the procedure of collection of income tax. The fundamental difference for foreign and domestic companies was the fact that our company when online trading to pay taxes on the territory of our country and foreign residents, offering their products and services on the Internet, the VAT is not paid. Therefore, we are receiving a significant price advantage in competition. Now, thanks to “the Google tax”, this gap in taxation will be eliminated.

Tax on Google got its name because of the global confrontation with the American search giant purely domestic search engine Yandex. Other things being equal Google has always had the most competitive advantage in the amount of VAT, which allowed customers to pull their side.

Recall that the bill not only supported, but also partly initiated personally by President Putin that the first of February this year, instructed the Federal Antimonopoly Service, the Ministry of Economy and Development, Ministry of Communications and other agencies to modernize the taxation system in the market of information technologies in the period before the first of September. However, officials ahead of the proposed schedule. The new law will take effect January 1, 2017.

16 June 2016

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Games much more expensive due to the adoption of the “tax on Google”

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