The City Government is expanding support measures for investors. A bill has been adopted on tax exemptions for participants of regional investment projects, according to Vladimir Yefimov, City Government Minister and Head of the Department of Economic Policy and City Development.
Concessions will be granted for the projects aimed at production of consumer goods. By law, such projects must have a sole participant and meet certain capital investment and type of activity requirements.
Vladimir Yefimov pointed out that support will be available to: 1) the organisations listed in a special register, and 2) the organisations that signed special investment contracts at federal level. These contracts stipulate that, in case the investor does not fulfill the said requirements it will have to compensate the city for any concessions provided.
The former category of companies will be paying lower tax (10 percent) on corporate profit for the first ten years (until 2028) while the latter will pay no tax up until the end of 2025. Additionally, both categories will pay no federal tax on corporate profit.
“Attracting investment remains the City Government’s priority,” Vladimir Yefimov said. “We are taking specific action in this respect, using all available tools, including those granted by the federal Government. The new law makes Moscow more competitive in attracting investors to modernising or developing industrial production.”