STS benefits in 2024 – Valen

An important condition for the application of the STS by an organization is the presence of registration in the region as of December 31 of the reporting year. The final STS rate is determined at the end of the reporting period.

In 2024, the preferential tax rate of 1 % without limitation on activity code is valid in the following regions of Russia:

• Republic of Kalmykia,
• Republic of Mordovia,
• The Republic of Udmurtia,
• Chechen Republic

Tax rates are also set in other regions, but with restrictions.

For example, in the Republic of Crimea, the rate is set at 4%, and in the Perm Region at 1%, provided that the organization or sole proprietor is initially registered in this region.

For 2024, the tax holiday benefit for newly registered sole proprietors under the STS was extended. That is, they will be able to avoid paying tax during two tax periods.

There are also industry-specific types of support for some types of activities. These include benefits for IT organizations.

There is regional support in the areas of the STS. For example, the Moscow Region sets 5% for the IT sector, not 6%. And in 31 Russian regions, they reduced IT to 1% for small IT businesses. This list includes: Arkhangelsk, Belgorod, Voronezh, Kurgan, Leningrad, Moscow, Murmansk, Nizhny Novgorod, Omsk, Orenburg, Penza, Rostov, Sverdlovsk, Smolensk, Tomsk, Tula, Tyumen, Ulyanovsk and Chelyabinsk regions, etc.

Thus, IT companies are exempt from inspections until December 31, 2024. In addition, the income tax rate is 0% if the core revenue is from 70% of all income. Companies are exempt from paying VAT when selling a certain number of Russian software.