Government Support

Support measures for the regional investment projects

Profit tax rate reduction from 20% to 10 %

The amount of exemption ≤ the amount of capital investments

Provision period: 

• -    Until 2027 (For the regional investment projects with the amount of investments up to 500 million roubles)
• -    Until 2029 (For the regional investment projects with the amount of investments more than 500 million roubles)

 

Property tax rate reduction from 2,2% to 0%

Provision period: 

• -    Up to 3 years (For the regional investment projects with the amount of investments up to 500 million roubles)
• -    Up to 5 years (For the regional investment projects with the amount of investments more than 500 million roubles)

 

Starting from the date of the facility (property) commissioning.

For the residents of the priority social and economic development areas

• Profit tax rate reduction from 20% to 3% ( For a 5 years period from the moment of gaining profit, not later the 4th  fiscal period), 13,4% - during next 5 years.
• Property tax rate reduction from 2,2% to 0% (For a 5 years period in regard the property registered as fixed assets after 01.01.2017 for the first 5 fiscal periods, 0,5% - for the next 5 years)
• Land tax – 0% (For a 3 years period starting from the fiscal period when the organization was registered as the resident of the priority social and economic development area)
• Transport tax – 0% (For a 10 years period starting from the fiscal period when the organization was registered as the resident of the priority social and economic development area)
• Insurance fees from 30% to 7,6% (For a 10 years period starting from the date when the organization obtained the status of the resident not later than 3 years from the day of the priority social and economic development area creation.
• Mandatory pension insurance from 22% to 6%
• Mandatory social insurance from 2,9% to 1,5%
• Compulsory medical insurance from 5,1% to 0,1%
• Interest rate drop in simplified tax system from 6% to 1% for income as the object of taxation, from 15% to 5% for “income, reduced by the amount of expenses” as the object of taxation.

Support measures for the residents of industrial and agricultural parks 

• -    Profit tax rate reduction in investment tax deduction from 20% to 0% to the federal budget and to 10% to the regional region.
• -    Property tax rate reduction from 2,2% to 0% (first 5 years), to 1,1% (next 5 years)
• -    Transport tax exemption (up to 10 years)
• -    Granting subsidies from the regional budget.

Special investment contract is a means of industrial policy, aimed at attracting investments into industrial production in Russia. Investors conclude the agreement with the government, in which the investors` obligations to implement the project are fixed. The government in its turn is obliged to provide business stability and support measures.

The mechanism of the special investment contract:

• SPIC 1.0 is presupposed for the investment projects for creation, modernization and (or) starting up industrial production.
• SPIC 2.0 is presupposed for the investment projects for introduction or elaboration of the modern technologies from the approved list in order to start up extensive industrial production based on these technologies. 

SPIC 1.0

Purpose of the support:

Creation, modernization and (or) starting up industrial production.

Minimum amount of investments:  ≥ 750 million roubles without value-added tax.

Support period: ≤ 10 years

Support measures:

1)    Stable conditions for investors` business activity;
2)    Profit tax rate reduction:
          - Up to 0% to the federal budget 
          - Up to 0% to the regional budget.
3)    Property tax exemption in the region.
4)    Status “Made in Russia” for products with a suspensive localization condition.
5)    Opportunity to obtain the status of the one and only provider for public procurement.
6)    Opportunity for the subjects of the RF to create the objects of infrastructure, special land lots rent terms.

The procedure of concluding SPIC 1.0:

1.    To apply for SPIC conclusion
2.    To conclude SPIC on interdepartmental commission`s decision 

The application to the Ministry of Trade of the RF is considered by the commission. If the decision is positive, SPIC is concluded.

SPIC 2.0

Purpose of the support:

Implementation of the industrial projects on the territory of the RF, which presuppose the introduction of modern technologies, allowing to produce competitive on the world market production.

Minimum amount of investments: absent 

Support period: 

• -    Up to 15 years if the investments are ≤ 50 billion roubles
• -    Up to 20 years if the investments are > 50 billion roubles

 

Support measures:

1)    Stable conditions for investors` business activity;
2)    Tax concessions;
3)    Status “Made in Russia” for products with a suspensive localization condition;
4)    Opportunity to obtain the status of the one and only provider for public procurement;
5)    Opportunity for the subjects of the RF to create the objects of infrastructure, special land lots rent terms.

The procedure of concluding SPIC 2.0

1.    To apply for SPIC conclusion
2.    Participate in the competition (the winner can be one or several participants based on the following criteria)
       -  The period of modern technology introduction;
       -  The amount of industrial production, manufactured within SPIC term of validity;
       -  Localization.
3.    To conclude SPIC by the results of the competition.