Legal regulation

Legal regulation

The normative legal acts regulating granting tax concessions to investors:

Regional law of 6.11.1998 No.29-03 “On investment activity in the Novgorod region”

In the law all “game rules” for the investors performing investment projects in the territory of the region are consolidated:

  • Investors rights;
  • Obligations and responsibility of investors;
  • Regulation of investment activity;
  • Conditions and order of granting tax concessions;
  • Zones of economic favor;
  • Stability of activity conditions of the organizations implementing investment projects.

Order of considering investment projects by the Administration of the region

The organization pretending to receive the tax concessions, presents to the Administration of the region the following documents in 2 copies:

  • Tender with the request to consider and approve the investment project (in any form);
  • Business plan of the investment project demonstrating profitability of the project and social effect on the economy of the region approved by the applicant which passed independent expertise. The expert expertising the plan, is selected by the applicant;
  • Calculation of the period of return on investment of the investment project taking into account tax concessions and without tax concessions according to the methodology described in the Regulations;
  • Copies of the annual accounting report for last fiscal year including the balance sheet with appendices and the explanatory note, copies of the accounting report for the current period, presented in due course to tax authorities;
  • Administrational document on the tax and accounting registration policy of the organization for corresponding year;
  • Building permission in case if according to the Town-planning code of the Russian Federation it is necessary for the project realization to receive the specified building permission;
  • Certificate from tax administration on absence of arrear for more than 6 months in budgets of all levels and off-budget funds as of 1st date, preceding the date of filing the application on approval of the investment project in the Administration of the region;
  • Conclusion of local government administration of municipal district (urban district) on expediency of realization of the investment project in the territory of the municipal district (city district) and possibility henceforth for the given organization to enter the category of tax payers using privileges on tax payment in the budget of municipal district (city district).

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

Decree of the regional Duma of 1.29.1997 No. 500-RD “On the approval of Regulations of calculating the moment of achievement of full cost recovery of invested funds, payback period and determination other characteristics of application of the privileges for the organizations performing investment projects in the Novgorod region”

The Regulations are developed according to the Methodology established by International Accounting Standards # 7. The international auditor firms took part in the development of the Regulations.

The Regulations establish:

  • a procedure of calculation of payback period for investment project, determination the period of using the tax concessions provided by regional laws on taxes and tax collections;
  • order and timing of presentation the reporting by the organization implementing the investment project, approved by the Administration of the region.

Regional law of 12.21.2009 No. 654-RL “On the state support of the commercial organizations in the territories of Batetsky, Volotovsky, Maryovsky, Parfinsky and Poddorsky districts and endowment the local government bodies of the Novgorod region on giving state support to the commercial organizations”

Commercial organizations registered and performing the activity in the territories of Batetsky, Volotovsky, Marevsky, Parfinsky and Poddorsky municipal districts are compensated the part of the costs connected with production and realization of the goods (works, services) at a rate of 83.3 % of the profits tax of the organizations paid in the regional budget in order and timing established by Tax Code of the Russian Federation.

Download text ot the Regional law of 12.21.2009 No. 654-RL (Russian).

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