Presenting the bill for consideration, the acting first Deputy Chairman of the Government of the Udmurt Republic Alexander Svinin said that, in accordance with appropriate regional regulations / law the rate of tax on profit to be credited to the budget of the Udmurt Republic for investors carrying out investment activities in the form of capital investments in the Republic established in the amount of 13.5 percent. The adjustment of the national law is made in connection with changes in the Federal legislation. The bill will allow to reduce the tax rate on profit for organizations of the Udmurt Republic, which implement investment projects on new platforms.
"As soon as I changed the powers of the constituent entities to establish tax rates on profits in 2016, as the number of regions in early 2017 quickly took this decision and imposed the income tax reduced rates. In accordance with the amendments made to the Tax code of the Russian Federation Federal law of 30 November 2016, the regional component of the tax on profit of organizations may be reduced for certain categories of taxpayers to 12.5 percent. In the Udmurt Republic the data rate in the current year were not used and we would like to change this for certain categories of taxpayers in the period from 2018 to 2020. To this category we propose to include the organizations engaged in Udmurt Republic investment projects on new platforms – so-called "Greenfield projects" (from the English. Greenfield – "open field" land, free from buildings, for the construction of the industrial complex "turnkey"). In accordance with this document on a competitive basis in 2018-2020 they will be able to get the maximum benefit tax profit of 4.5 percent. Measures aimed at strengthening the investment attractiveness of the Republic. As in the neighbouring regions this provision is already operating in 2017", - said Alexander Svinin.
The law will come into force on 1 January 2018.
This information is taken from the head of the Udmurt Republic
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