Tax benefits in Leningrad region are granted in accordance with the law of 29.12.2012 No. 113-oz “On Government Support for Organizations Undertaking Investment Activity in Leningrad Region and on Amendments to Certain Legal Acts of Leningrad Region” (valid until 2022 inclusively). “Investment project” is defined by legislators as placement of new and/or expansion of already existing production plants in Leningrad region.
Conditions for obtaining tax benefits:
• registration of a legal entity in Leningrad region;
• investing within less than three years;
• work in the spheres approved by the law No. 113-oz;
• conclusion of an agreement with the regional Government on the regime of government support for investment activity.
Periods of granting tax benefits
The law of Leningrad region of 25.11.2003 № 98-oz “On Corporate Property Tax” exempts investors from corporate property tax on properties created or acquired for the implementation of an investment project in accordance with the projects business plan (and not included in taxable property in Leningrad region prior to the start of the investment project implementation):
Committee for Economic Development and Investment Activity of Leningrad Region prepared the law No. 89-oz “On Incentive Measures during Implementation of Regional Investment Projects in Leningrad Region” which came into force on 1 January 2020.
Regional investment project (RIP) is a project aimed at production of goods included in section C “Manufacturing industries” of the All-Russian Classifier of Economic Activities.
RIP participants receive the following tax benefits:
Tax benefits can be received if investments are made in an investment project after inclusion in the list RIP participants.
Revenue from sales of goods produced as the result of the implementation of RIP should be not less than 90%.
Each RIP should be implemented by one participant.
The federal law of 01.04.2020 No. 69-fz “On Protection and Promotion of Investments in the Russian Federation” is introducing a new tool for the implementation of investment projects using government support – an agreement on protection and promotion of investments (APPI).
Investors and the government conclude an agreement on conditions for the implementation of an investment project: investors undertake to invest in the project, and the region guarantees stabilization of tax and other regulatory conditions to investors.
The key feature of the APPI mechanism is that it provides investors with guarantees of the stability of the legal status – the project implementation in the conditions in which it was planned.