Issue #9, October 2015 | Deloitte CIS | Tax has been added to your bookmarks.
Research & Development and Government Incentives news
Issue #9 | October 2015
- Regional tax incentives
- Priority development territories
- Free Port of Vladivostok
- Federal tax incentives
The present Review is for informational purposes only and should not be considered an official consultation or recommendation, advertising or offer of Deloitte. Deloitte does not bear any responsibility or make any guarantees regarding the publication of the facts, data and other information provided in the present Review...More
30 October 2015
Tax incentives for car manufacturers may be provided in the Leningrad Region
On 12 November 2015, the Legislative Assembly of the Leningrad Region adopted in the third reading a Draft Law according to which tax incentives may be applied to car manufacturers in the form of a property tax rate reduced to 1.1% until 2018.
The region’s sole car producer, Ford Sollers, which is planning to stop its production from 18 November 2015, will be able to use this privilege. Please see our News, Issue No. 6 (July), for more details about the Draft Law.
29 October 2015
Tax incentives for IT companies provided in the Ulyanovsk Region
On 29 October 2015, a Law was adopted according to which a reduced corporate income tax rate of 15.5% may be applied to companies operating in the field of information technologies, holding certificates of state accreditation issued in accordance with the procedure established by the Government of the Russian Federation and whose income from provision of IT services amounted to at least 70% of the total income. The Law is effective from 1 January 2016 to 31 December 2018.
28 October 2015
Set of laws on state support of investment activities adopted in the second reading by the Legislative Assembly of the Vladimir Region
According to Law No. 90-ОЗ On State Support of Investment Activities realised in the Form of Capital Investments on the Vladimir Region Territory, currently, investment activities are supported in the form of a reduced income tax rate of 15.5% and a property tax exemption. An investment project is supported during the actual payback period but no longer than the estimated payback period.
The Draft Law provides for the introduction of a new procedure for granting tax incentives after the project implementation depending on its category (from One to Five). An investor may be authorised to apply for tax incentives within three years from the date of commissioning of new facilities. The draft law also provides for reduced income tax rates from 15.5% to 19% and corporate property tax rates from 0% to 2% depending on the category of the investment project. Incentives with respect to each category are valid from 2 to 7 years depending on the investment amount.
28 October 2015
Clarifications on property tax incentives for organisations implementing investment projects in the Jewish Autonomous Region
The Parliament of the Jewish Autonomous Region (JAR) has approved amendments to the regional law On Corporate Property Tax clarifying the procedure for application of the property tax rate of 1.5% by organisations implementing investment projects in the JAR. According to the amendments, the tax rate may be applied only to the property created or purchased during the implementation of the project. The amendments shall take effect on 1 January 2016.
27 October 2015
Tax incentives for investors in the Nenets Autonomous Region
On 22 October 2015, the Assembly of Deputies of the Nenets Autonomous Region adopted a Law according to which an incentive may be applied to large investors in the form of a reduced corporate income tax rate of 15.5%. The rate may be applied starting from the first day of the tax period following the period when the value of new fixed assets amounted to more than RUB 1 billion.
The law shall become effective one month after the day it is published, and shall cover legal relations that arose since 1 January 2015, it shall be active until 31 January 2021. Please see our News, Issue No. 7 (August), for more details about the Law.
27 October 2015
Regions adopt amendments on real estate taxation on the basis of cadastral value
Regions continue to make amendments clarifying the procedure for corporate property tax assessment and providing for a tax base determined as a property cadastral value with respect to certain types of real estate. Thus, for example, the legislative authorities of Chelyabinsk and Pskov Regions have already adopted certain draft laws in the first reading.
23 October 2015
Tax incentives for investors in the Tyumen Region
On 23 October 2015, the Budget, Tax and Finance Commission of the Tyumen Regional Duma approved a Draft Law according to which income tax, property tax, and land tax incentives may be provided to certain categories of taxpayers including organisations implementing new construction projects, organisations implementing investment projects included in the register of investment projects, manufacturers of pharmaceuticals and rolled metal products for the period from 2016 to 2018. Visit our page on Linkedin for more details about the Draft Law.
19 October 2015
Tax incentives for Moscow enterprises
On 7 October 2015, a Law On the Industrial Policy of the City of Moscow was adopted according to which tax incentives, subsidies, and additional guarantees and compensation may be provided to entities operating in priority industrial sectors, anchor residents, and residents of technology parks and industrial parks, participants, and specialised organisations of industrial clusters.
On 7 October 2015, a Law On the Investment Policy of the City of Moscow and on State Support for Investors was adopted according to which tax incentives may be provided to Moscow enterprises implementing priority investment projects. The status of a priority investment project can be given for a period of up to 10 years to projects meeting certain criteria. The main criteria include: highly skilled job creation, projected investment amounts, priority areas of investments, and participation in import substitution programs. The list of priority sectors of Moscow's economy, where projects should be implemented, and the procedure for receiving the status of a priority investment project will be additionally approved by the Moscow Government.
Tax incentives for organisations implementing priority investment projects and organisations specified in the Law On the Industrial Policy of the City of Moscow may be provided in the form of a property tax exemption, reduced land tax rate of 0.7% and a reduced income tax rate of 15.5% prior to the expiry of the status of a priority investment project of the city of Moscow, technology park or industrial park.
The Law On the Investment Policy of the City of Moscow became effective on 30 October 2015. The Law On the Investment Policy of the City of Moscow and on State Support for Investors will become effective on 1 January 2016.
Regional tax incentives
26 October 2015
Investment loan subsidies may be provided to automotive companies
The Ministry of Industry and Trade of the Russian Federation (Minpromtorg) has submitted for public discussion a Draft Resolution of the Government of the Russian Federation on investment loan subsidies for automotive companies. Resolution of the Government of the Russian Federation No. 640 dated 1 August 2011 providing for the rules for the provision from the federal budget of subsidies on loans received for the implementation of investment projects, subsidies on bonds, and subsidies on loans secured by a state guarantee, does not provide for this type of subsidy.
The date of completion of the public discussion is 9 November 2015.
8 October 2015
Subsidies for pharmaceutical companies
On 12 October 2015, Resolutions of the RF Government No. 1045, 1046, 1047, and 1048 came into force according to which subsidies may be provided to pharmaceutical companies for organisation or modernisation of the production of medicines and pharmaceutical products, as well as clinical trials. Please see our News, Issue No. 4 (May), for more details about the Resolutions.
26 October 2015
Regions are committed to preparing and submitting applications for creation of priority development territories
Currently, constituent entities of the Russian Federation are committed to developing Priority Development Territories (PDT). The establishment of PDTs in four mono-cities has already been approved and about twenty applications for the development of PDTs are under consideration by the Ministry of Economic Development and Trade of the Russian Federation. Visit our page on Linkedin for more details about PDTs in mono-cities.
There are also nine PDTs in Russia established outside the mono-cities. Currently, the Ministry for Development of the Russian Far East together with the Administration of the Primorsky Krai are working on a concept for another PDT in the Far East (Russky Island) aimed at the creation of educational, touristic, and medical clusters in contrast to the above nine PDTs with production facilities.
On 22 October 2015, Resolution of the RF Government No. 1132 was adopted approving the procedure for routine inspections of residents of PDTs. The Resolution takes effect on 1 January 2016.
Priority development territories
20 October 2015
Selection criteria for the residents of the Free Port of Vladivostok
Selection criteria for the residents of the Free Port of Vladivostok are approved by Resolution of the RF Government No. 1123 dated 20 October 2015.
The list of types of entrepreneurial activities that cannot be performed by the residents and the list of types of entrepreneurial activities that do not assume any government support were approved on 21 October 2015.
Pacific Investment Company, which is engaged in the construction of a hotel complex, became the first resident of the Free Port of Vladivostok.
The Federal Law On the Free Port of Vladivostok became effective on 12 October 2015. Please see our Russian Alert issue dated 14 July 2015 for more details on the Law.
Free Port of Vladivostok
8 October 2015
Income tax burden of organisations may be reduced due to reimbursement for modernisation
A Draft Law has been submitted to the State Duma according to which organisations may be entitled to apply a special ratio not exceeding 5 to the basic depreciation rate with respect to fixed assets, such as production equipment produced in the Russian Federation, purchased and put into operation within the period from 2016 to 2020.