Foreign Fee: Who Pays and How

In September, the government will present a bill to the State Duma regarding the establishment of a special training camp for the use of foreign software, as stated by Maksut Shadaev, the head of the Ministry of Construction. This new measure is intended to support domestic software developers and will not impact small and medium-sized enterprises, as well as budget organizations.

Initially suggested by Prime Minister Mikhail Mishustin in June 2023, this initiative aims to provide financial support to domestic software developers. The funds generated from the new fee will be divided into two areas: a portion will be used for grants, while the remaining funds will be allocated to establish a fund for preferential lending in the IT sector.

The introduction of this fee is linked to the push for the use of domestic software. Under the plan, businesses will be required to pay for licenses for foreign software programs into designated ruble accounts, and any funds rejected by foreign holders will be directed to the support fund of the Russian IT industry.

Shadaev emphasized the necessity of this measure, despite its lack of popularity, in stimulating businesses to transition to Russian software. He believes that the fees should act as an economic motivator, reinforced by tax incentives.

Nevertheless, not all business representatives are in favor of this initiative. Alexey Mordashov, the chairman of the Board of Directors of Severstal, expressed concerns about the additional burden on businesses, particularly considering the current expenses associated with developing proprietary software, especially in light of the support available from foreign providers.

Since March 2022, in accordance with a decree from President Vladimir Putin, companies that control critical infrastructure must switch to domestic software by 2025. However, by the autumn of 2023, one in every five organizations had already stated their inability to meet this requirement within the stipulated timeframe.

/Reports, release notes, official announcements.