Russia’s Regions Roll Out Tax Breaks for New IT Entrepreneurs

Local governments are offering tax holidays and regulatory relief to fuel the country’s fast-growing tech sector.

Russia’s IT market is rapidly expanding, attracting not only major companies but also individual entrepreneurs. To accelerate growth, several regions have introduced support measures and incentives, including tax breaks. In the Chelyabinsk region, for example, new IT entrepreneurs are exempt from taxes for two reporting periods and shielded from regulatory audits during that time.

The policy is already showing results. More than 2,500 IT entrepreneurs have registered in the region, with total turnover surpassing 70 billion rubles last year.

Local residents are seeing tangible benefits. In Chelyabinsk, 85 trams have been outfitted with smart cameras, while digital technologies are being actively deployed in healthcare and education. Regional agencies are also streamlining operations through data-driven systems, reducing the workload on employees and improving the speed and quality of services for citizens.