The Russian authorities have allowed individuals to build main digital channels for the state

A declaration to extend funding for digital platform creators was signed by Mikhail Mishustin.

Saturday, November 14, 2020, 12:55 GMT

Organizations that build digital services and apply for subsidies will now draw not only enterprises to operate, but also people, including individual entrepreneurs.

Government extends laws on subsidies:
Russian Prime Minister Mikhail Mishustin has signed a decree amending the rules for businesses to subsidize the creation of digital platforms for the manufacture of high-tech manufacturing goods.

Authorities are allocating 1 billion US dollars from the federal budget to fund digital platform entrepreneurs. Single year. In the paper, the digital network means a collection of technological goods that guarantee the market organizations in the industry connect.” Developers will cover up to 50 percent of the expense of producing digital products with a subsidy. In addition, the costs of remuneration of workers for the construction of new workplaces, the procurement of equipment and the acquisition of permits required for the project will be reimbursed.

Image source: MercedesBenz

The paper, which was released on the Government’s website on 12 November 2020, amends the Decree of 30 April 2019 laying down the guidelines for the distribution of subsidies…

The amount of compensation for the organization’s costs for the remuneration of workers is rising in particular. If it had previously relied on the region’s average salary, it now depends on the average regional salary of professionals employed in computer software development, consultancy and other relevant services in this sector.

In addition, the percentage limits on the expense of buying instruments and the efficiency of scientific and design work contracts have been eliminated. Organizations would then be free to select the sum of state funding in either direction separately based on the initiative.

The details of the work of the workers are being explained. It was historically reported that operating costs should be subsidized in the form of no more than 100% of the amount of labour costs directly connected to the execution of a complex project for workers. “The details have also been added: “for the remuneration of staff specifically related to the implementation of science, growth and technical work in the sense of the execution of a complex project.” The same explanation applies to the costs of equipping and retaining recently developed and modernized workplaces in the context of the execution of a complex project:

It is also recognized that organisations specifically engaged in carrying out science, growth and technical work for the execution of a complex project will now include not just enterprises, but also people, including individual entrepreneurs, in their work.

Subsidized expenses relating to the construction and repair of workplaces, the procurement and manufacturing of models, stands, structures, test stations, instrumentation and other devices, tools, technical equipment and other special equipment required for the execution of a complex project, the charging for works and facilities, and the purchasing of special equipment necessary for the execution of a complex project.

In the background of the New Technologies Federal Initiative of the Digital Economy National Program, IT companies are funded.

The industries that will be impacted by the move
The developments would have an influence on technology pioneers for different sectors – aerospace, radio electronics, railway engineering, aviation.

Computer-aided modeling, technical analysis, machine tool control engineering records, industrial processes, operational processes, development properties and maintenance, as well as production preparation and material specifications and condition tracking of equipment, may be the software items in question.

How to gain a subsidy:
You ought to pass a competitive selection to earn a subsidy. The decision to conduct a competitive selection is made by the Ministry of Industry and Trade, taking into account the specifics of the current budget configuration.

A condition is that the length of the R&D performance in relation to the platforms does not extend two years, the execution of which should commence no sooner than one year before the year in which the proposal for membership in the competitive selection is submitted. It is not necessary to refund the expenses borne by the developer until the end of the subsidy deal.

A web network developer applying for a subsidy does not have unpaid commitments and budget gaps. Often, it must not be in the reorganization, liquidation or bankruptcy process. A subsidy will not be granted to a foreign legal entity or to an entity which is more than 50% owned by legal entities registered in offshore zones. Furthermore the receiver company’s details must be shared on the Internet.