Media: the authorities will oblige large foreign IT companies to open representative offices in Russia

The Russian government plans to create a “digital residency” system for foreign IT companies. This plan involves the mandatory registration of representative offices or legal entities of similar companies on the territory of the Russian Federation and the collection of taxes from them.

As Kommersant writes with reference to the support plan for the IT industry, it is planned to introduce a mandatory registration requirement in a separate bill. It is assumed that the new rules will affect companies with an audience of more than 100-500 thousand users from the Russian Federation.

“Such a measure is necessary in order to ensure the equal applicability of laws to foreign and domestic companies operating in Russia,” Alexander Zhuravlev, Chairman of the Commission on Legal Support of the Digital Economy of the Moscow Branch of the Russian Lawyers Association, told Hodlmonks.

Google, Facebook, Booking, Amazon and other services may fall under the registration requirements, experts say. 

The instruction to develop additional requirements for foreign technology companies operating in Russia , including obligations to open representative offices of such companies in the Russian Federation, was given by Russian President Vladimir Putin.

Recall, experts noted that such an initiative could affect the blocking of social n,etworks.

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