ππ΅ Media companies request tax deferral
Russian broadcasters and video services have appealed to the Ministry of Digital Development (Mincifry) with a request to extend a temporary tax relief measure. This measure was adopted at the end of 2023 and is only valid until December 31, 2025.
The tax relief was needed after Russia partially suspended its Double Taxation Treaties (DTTs) with foreign countries. If it is not extended, media companies will be forced to deduct a 25% profit tax from licensing payments for foreign content starting in 2026.
According to experts, rights holders will likely incorporate this tax into the cost, leading to a 25% price increase for content for Russian consumers. The rise in prices and the reduction in purchases of new foreign films and series by video services could provoke a user migration to pirate resources.
Alexey Byrdin, CEO of the Internet Video Association, is confident that the cancellation of the relief will slow down the growth of content markets, which reached 37% in 2024 (up to 128.8 billion rubles).
