Research & development and government incentives

Services

Global Investment and Innovation Incentives 

If your business is planning expansion, relocation or investment, there are a wide range of incentives, grants, subsidies and tax breaks offered by both national and regional governments. These can range from tax breaks for investment above a certain threshold to tax incentives for R&D spending.

A comprehensive approach

Applying for these incentives can be a time-consuming and complex process due to the sophisticated nature of Russian law and difficulties related to their practical implementation. Our experienced team can help you at every stage of the way by:

  • Advising on the range of incentives available
  • Helping select the most appropriate grants, incentives or tax breaks for your business
  • Conducting a feasibility review of your potential claim
  • Calculating the amount of resources required to make the claim
  • Making sure that applications and business plans are tailored to maximize the potential benefit and minimize the potential risk
  • Assisting in your negotiations with national and regional government
  • Preparing supporting documentation for the authorities
  • Handling information requests from government bodies
  • Supporting with the settlement of tax disputes in the area of tax incentives together with the Deloitte tax dispute resolution team
  • Advising on the set-up and management of your R&D activity (assessment of relevant government support, developing an optimal R&D strategy for the company)

How could you benefit?

 

If you …
You may benefit from…

are developing a new product or technology in the energy efficiency, nuclear engineering, space technology, medicine or IT industries and are ready to move to Moscow

the Skolkovo regime (reduced burden for almost all taxes)

are planning to invest in building/renovating a plant or other equipment/property

regional tax incentives (profit and property tax reductions)

are planning to build a manufacturing plant, establish an R&D center/high-tech company or start a hospitality business (in certain specific locations)

Special Economic Zones (reduced burden for almost all taxes)

are going to do business in Russia’s Far Eastor in a of single-industry townsthat has a difficult financial and economic situation

Territories of advanced social and economic growth (profit tax reduction and other benefits)

are going to produce goods and invest in certain regions of Russia’s Far Eastor Siberia

regional tax incentives (profits tax reduction) for participants of a regional investment project

are conducting certain R&D activities

a 150% ‘super deduction’ of respective costs to reduce profit tax

are engaged in software development             

reduced social contribution rates

are operating in the medical or educational sectors, or are a producer of agricultural goods

waiver of profit tax

Our professional expertise

Our dedicated service bears unique standing in the Russian marketplace, as our team is the only one directly specializing in government incentives, tax reductions and other forms of state support.

For the last seven years, we have helped a significant number of companies from various industries and regions to receive tax savings by recognizing their eligible activities and qualifying costs and preparing robust claims. As Deloitte offers the biggest international R&D taxation team, we are impeccably equipped for protecting the interests of international companies in Russia.

We regularly help regional governments to formulate regional tax incentives for investors, and we work closely with the Special Economic Zones in Russia and the Skolkovo Innovation Centre. Our experts are advising the Russian government on establishing the best R&D regime options, and we have assisted the Federal Tax Service to produce a methodology for tax reviews of R&D claims. In partnership with the Deloitte Research Center, we conduct research into the efficiency of state support for R&D (materials are available in Russian only).

This is interesting

Our team is ready to keep you up-to-date with:

We provide an all-encompassing overview of the legislative framework and practice of government incentives not only in Russia, featuring professional R&D insight for more than 30 countries. You can stay informed about the latest news and events regarding tax deductions, grants and other forms of state support on our web page, as well as subscribe to our periodicals.

Key contacts

Artem Vasyutin

Artem Vasyutin

Partner, Tax & Legal

Artem heads the Tax & Legal practice in St. Petersburg. He has worked with consumer businesses and the manufacturing sector and has assisted a number of major investors in Russia with green-field proj... More

Emil Baburov

Emil Baburov

Senior Manager, Tax & Legal

Emil has more than seven years of experience in providing professional services. His project portfolio includes tax support during financial statement audits and tax due diligence. Emil is actively in... More