The Russian authorities wanted to collect more taxes from foreign companies operating in the IT sector, writes Kommersant. To do this, they will be obliged to register a separate branch in Russia.

The government’s initiative implies the creation of a new status – “digital residence”, for which it will be necessary to register remotely in the personal account of the Federal Tax Service or create a subsidiary in Russia together with a domestic company.

The measure will affect foreign IT companies with an audience of more than 500 thousand people in Russia. A company that has received the status of a “digital resident” will be obliged (independently or through a created Russian “daughter”) to pay taxes, primarily income tax and VAT.