Mechanisms of the state support of investment activity

Mechanisms of the state support of investment activity in the region

Providing regional tax concessions

Pathway of the documents presented to the Administration of the region for the purpose of approval of the investment project in order to receive tax concessions:

Support of investment activity

The organization applying for receiving tax concessions, presents to the Administration of the region the following documents in 2 copies:

  1. application with the request to consider and approve the investment project (in any form);
  2. business plan of the investment project approved by the applicant showing profitability of the project and social effect for the economy of the region which has passed an independent expertize. The expertizing expert is selected by the applicant;
  3. calculation of payback period of the investment project taking into account tax concessions and without tax concessions according to the methodology approved by Decree of the regional Duma of 1.29.1997 No. 500-RD;
  4. copies of the accounting annual reporting for last fiscal year including the balance sheet with appendices and the explanatory note and copies of the accounting reporting for the current period, presented in due course to taxing authority;
  5. administrative document on the tax and accounting registration policy of the organization for corresponding year;
  6. building permission in case if according to the Town-planning Code of the Russian Federation for project realization it is necessary to receive the specified building permission;
  7. certificate of taxing authority on absence of arrears over six months to budgets of all levels and off-budget funds as of 1st date, preceding the date of filing of the application for approval of the investment project in the Administration of the region;
  8. conclusion of local government of municipal district (city district) on expediency of realization of the investment project in the territory of municipal district and possibility later for the given organization to enter into the category of payers of the taxes using privileges on tax payments to budgets of municipal district.

The decision on the approval of the investment project is taken by the Administration of the region within 2 months after presentation to the Administration of the region the specified documents.

Preparation of the documents represented to the Administration of the region for the purpose of approval of the investment project for receiving tax concessions:

  1. Organization implementing the investment project develops the business plan of the project.
  2. On basis of the business plan, calculation is made of payback period of the investment project taking into account tax concessions and without the tax concessions according to the methodology descibed in Regulations of calculation of moment mo achivement of full cost recovery of invested assets, payback period and determination of other characteristics of applying privelegies for organizations, performing investment project in Novgorod region.
  3. Business plan of the investment project is approved by the head of the organization and is forwarded to independent expertize. Expert is selected by the organization carrying out a project.
  4. The organization forms a package of documents necessary for consideration of the question on possibility for the organization to enter the class of taxpayers using privileges on tax payment to the budget of municipal district.
  5. The package of documents is forwarded to the local government for examination for the purpose of decision-making on expediency of realization in the territory of municipal district of the investment project and possibility later for the given organization to enter into the category of taxpayers using priveleges on tax payment to the budget of municipal district.
  6. The municipal district administration prepares conclusion on possibility for the organization to enter the category of taxpayers, using priveleges on tax payment to the budget of municipal district.
  7. The conclusion of local government of municipal district on expidiency of realization in the territory of the municipal district of the investment project and possibility for the organization to enter the category of taxpayers, using priveleges on tax payment to the municipal district budget is forwarded to the irganizations.

The list of the documents represented to the Administration of municipal district for examination for the purpose of decision-making on expediency of realization in the territory of municipal district of the investment project and possibility later for the given organization to be included into a category of tax payers using privileges on tax payment to the budget of municipal district:

  1. approved business plan the project;
  2. calculation of payback period of the project;
  3. copies of the annual accounting reporting for the last¬ fiscal year including the balance sheet with appendices and the explanatory note, copies of the accounting reporting for the current period, the administrative document on the tax and accounting registration policy of the organization for corresponding year;
  4. building permission in case if according to Town-planning Code of the Russian Federation for project realization it is necessary to receive the specified building permission;
  5. certificate of taxing authority on absence of arrears of the organization -to budgets of all levels and off-budget funds;
  6. conclusion of independent expert about the project, confirming the initial data of the investment project, correctness of business plan calculations, estimation of budgetary and cost efficiency, conclusion about conformity of indicators of the investment project to the criteria established by the regional law “On investment activity in the Novgorod region”.

Application of decreasing coefficient to rental payments

In the region for the purpose of realization state policy of support of small and average entrepreneurship provision is carried out to renters in certain spheres of action concessionary conditions in the form of decreasing coefficient to the size of rent payment for real estate. Rent payment rates for using regional real estate are established by Decree of the Administration of the region of 5.23.2005 No.134 “On the order of establishment of rent payment for using regional real estate” (in edition of Decree of the Administration of the region of 11.25.2011 No.646, of 3.1.2012 No.97).

Coefficients of business activities, performed by the renters of regional real estate:

Coefficient: –0,1.

Activity of state and municipal authorities not producing profit to them.

Coefficient: –0,2.

Activity: non-government organizations and other non-commercial organization, not producing income to them except for activity of state and the local government offices, not producing income to them.

Coefficient: –0,3.

Activity of business units in the  following spheres: education, public catering in education system, public health service, domestic servicing of the population, agricultural production, assistance to cultural potential of the region, development of folk craft and artistic creation, designing and carrying out repair and restoration work of objects of cultural heritage, delivery of services of postal communications, construction and maintenance of autoroads, activity of land transport and additional transport activity.

Coefficient: –0,5.

Activity of business units in the sphere of   industrial production.

Coefficient: –1,0.

Other types of activity.

Subsidizing the part of interest rate under attracted bank credits

Subsidizing at a rate of 2/3 of official bank rate (discount rate) of Central bank of the Russian Federation (Bank of Russia), acting for the date of the conclusion of the credit agreement under the credits received by subjects of small entrepreneurship in the Russian credit organizations for development of an entrepreneurial activity performed by them and financings investment projects is performed according to the regional target program “Development of small and average entrepreneurship in the region in 2008-2012”, approved by Decree of the Administration of the region of 4.2.2008 No.109. 

Investment tax credit

According to article 63 items 66-68 of Tax Code of the Russian Federation the investment tax credit can be given for regional taxes, upon availability at least one of following reasons:

  1. Carrying out by the organization research-and-development or experimental designing or technical re-equipping of own production, including directed on creation of jobs for invalids or environmental protection from pollution by industrial pollutants (the investment tax credit is given for the credit sum, composing 30 % of the cost of the equipment acquired by the interested organization used only for the listed purposes);
  2. Realization by the organization of implementational or innovative activity, including creation new or enhancement of used technologies, creation new kinds of raw products or materials (the investment tax credit is given for the sums of the credit determined under the agreement between authorized body and the interested organization);
  3. Accomplishment by the organization especially important contract on social and economic development of the region or provision of particularly important services to the population (the investment tax credit is given for the sums of the credit determined under the agreement between authorized body and the interested organization).

E-mail: arno@niac.ru
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Fax: +7 (8162) 773-878.
Phones: +7 (8162) 731-990; 736-354.
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