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<h2 id="heading_1"><span>Tax Measures for AI</span></h2>
<p><span>Russia is developing support measures for the creators of national and sovereign foundational artificial intelligence models. Proposals from the ANO "Digital Economy" were sent to the Ministry of Digital Development at the end of July as part of the preparation of subordinate legislation following the AI law enacted in July.</span></p>
<p><span>Among the proposals is an annual regional investment tax deduction for profit tax equivalent to the expenses incurred in developing the AI model. The benefit is suggested to be capped at 20 billion rubles per organization until 2030. Furthermore, the company's investments must exceed the deduction amount by five times.</span></p>
<p><span>This mechanism is also proposed to apply to expenditure on equipment acquisition. The primary region for its implementation may be Moscow, which accounts for about 90% of such costs.</span></p>
<h2 id="heading_2"><span>Expense Accounting and Contributions</span></h2>
<p><span>Expenses associated with the creation of national and sovereign AI models are suggested to be accounted for at three times their value. According to the document's authors, this could allow for a profit tax savings of up to 50% of invested funds. Expenditures for retraining models are also proposed to be capitalized and included in the cost of new models.</span></p>
<p><span>Expenditures for AI-enhanced program modifications and subsequent updates from the Ministry of Digital Development's registry are suggested to be accounted for at double their actual value. The authors estimate that this would allow developers to recover between 5% to 25% of their invested capital. Retrained models may also be registered as new software in the Russian software registry.</span></p>
<p><span>A reduced insurance contribution rate of 7.6% is proposed for organizations involved in the development and distribution of AI models. For legal entities within the same group as the developer of a sovereign or national model, participating in its development and distribution, a zero rate is proposed. The list of such firms will be approved by the Russian government, but this measure will not apply to credit institutions.</span></p>
<h2 id="heading_3"><span>Ongoing Development</span></h2>
<p><span>The Ministry of Digital Development has reported that discussions on additional support measures for Russian AI model developers are underway, involving industry representatives and interested agencies.</span></p>
<p><span>The office of Deputy Prime Minister Dmitry Grigorenko confirmed that these measures are being developed within a working group established by the government's subcommission on AI development and implementation, as well as on the platform of ANO "Digital Economy".</span></p>
<p><span>“Various support measures for domestic AI solutions are being discussed with business involvement, both financial and non-financial,” said a representative of the Deputy Prime Minister's office. Final decisions on specific tools and support volumes have not yet been made.</span></p>
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