Reframing Russia’s IT Talent Debate: Incentives, Taxes, and Remote Work

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The Russian Ministry of Digital Development, Communications and Mass Media is crafting an incentive package aimed at IT professionals who choose to return to Russia. Reports in Kommersant indicate the ministry is coordinating with industry associations to shape this program.

Additionally, discussions are underway about sanctions for IT specialists who do not plan to come back to the Russian Federation.

In official remarks, the incentives are described as a mix of rewards such as guaranteed conscription and coverage of travel costs to Russia, while increases in personal income tax are framed as punitive measures.

There is talk of raising the tax rate to 30% for those who relocate abroad, and publicly there is a potential restriction that could bar remote work for Russians living outside the country from their positions with domestic companies.

Valentin Makarov, director of NP Rusoft, warned that elevating the personal income tax to 30% could trigger mass layoffs within the IT sector. A final package had not been finalized at the time of the report, but authorities indicated it would be adopted soon (Kommersant).

The Ministry of Digital Development stated disagreement with ideas that would ban remote work from abroad and impose protective higher taxes solely for departing IT professionals (Kommersant).

State Duma deputy and TV presenter Yevgeny Popov described the IT sector as facing a catastrophe, noting that even if many IT professionals leave and return, the sector would still suffer from a shortage. He argued the problem is structural and must be addressed by expanding both recruitment and retention within the industry (socialbites.ca, cited via Kommersant).
This perspective emphasizes that the sector needs fresh and ongoing talent, not just punitive measures aimed at those who depart, and that policy should support the industry as a whole rather than targeting the departures alone.

On December 25, State Duma Speaker Vyacheslav Volodin announced that lawmakers were preparing a bill to raise the tax rate and remove certain preferences for Russian citizens who left the country after the start of the military operation in Ukraine, with Volodin noting that many left for understandable reasons and that most do not align with broad societal support for their actions (Telegram post via Volodin).

Maksut Shadayev, head of the Ministry, previously stated that around 100,000 IT professionals left Russia in 2022, and about 80% of them continue to work remotely for Russian companies (Kommersant).

Andrey Klishas, chairman of the Federation Council’s Committee on State Building and Constitutional Legislation, suggested that authorities could develop measures to make living abroad less convenient for migrants, including possible changes to the law that would limit programs allowing earnings from abroad while ensuring tax compliance (Vedomosti, cited via Kommersant).
Klishas also indicated openness to legislative changes and stressed that he did not consider those who left to have committed a crime (Kommersant).

The conversation among policymakers also touched on whether there should be inducements to entice those who left to return, or whether additional benefits to stimulate the domestic IT sector should be pursued. The discussion reflects a broader debate about balancing patriotic considerations with the practical needs of the tech industry (Kommersant).

President Vladimir Putin has previously stated that he does not single out citizens who have left the country, explaining that in every society individuals pursue personal interests and plans, which can include relocation (Kommersant).

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