Over 60 enterprises and technology parks receive tax benefits in Moscow

Over 60 enterprises and technology parks receive tax benefits in Moscow
Photo: Photo by the Mayor and Moscow Government Press Service. Denis Grishkin
Technology complex or industrial park status provides investors and businesses a tax break of 10-25 percent.

Today, the city has 30 industrial complexes and 31 technology parks where over 79,600 people are employed. The Moscow Government Presidium decided to add seven more companies (six industrial complexes with a total of 10,200 employees and one technology park with almost 2,000 employees) to the list.

“We provide substantial benefits for these companies, including tax, land and property benefits. High salaries are the main condition for providing benefits, to encourage these companies to create good jobs for city residents. This is the first thing. Second, these companies must invest in their own development,” Sergei Sobyanin said.

The city monitors compliance with these conditions based on agreements being signed with companies, said Alexei Fursin, Head of the City Department of Science, Industrial Policy and Entrepreneurship. “We want enterprises and technology parks to commit to investing in retooling, in building additional production capacity and in establishing collective use centres for other companies that lease this complex,” he noted. Besides, it is necessary to monitor compliance with the specific obligations being approved by enterprises all the time, Mr Sobyanin commented.

The following companies have received industrial park status:

Binnopharm, one of the largest national biopharmaceutical complexes. The company manufactures six types of medications: sprays, ampoules, capsules, pills, flasks and syringes.

It is located in Zelenograd at: 3 Designer Guskov Street. Official website: binnopharm.ru.

The complex has an area of 2.91 hectares, with a floor space of 32,200 square metres. The company employs 244 people, with monthly salaries averaging 88,901 roubles.

In the past five years, Binnopharm Co has invested 597 million roubles in corporate development projects. In the next five years, there are plans to expand the share of goods under city contracts, to develop new medications, and to enter new sales markets.

Toropov Vympel State Machine-Building Design Bureau, a leading national design bureau manufacturing defence products.

It is located at: 90 Volokolamskoye Motorway. Official website: vympelmkb.com. It occupies 8.97 hectares, and has a floor space of 71,000 square metres.

The Design Bureau employs 2,522 people, with monthly salaries averaging 69,000 roubles.

In the past five years, the company has invested 1.3 billion roubles in corporate development projects. In the next five years, there are plans to hold a complex upgrading and retooling of the Design Bureau’s laboratory-design building and the mechanical assembly shop.

Aeroelektromash, an enterprise that develops, manufactures and maintains electrical engineering equipment for aircraft. Its products include electric motors, generators and transformers. “Most of our equipment is intended for the Russian domestic market, with Russian regions accounting for 90 percent of these markets, and Moscow has about 60 percent of them,” Mr Fursin said.

The company is located at: 12 and 60 Bolshaya Novodmitrovskaya Street. Official website: aeroem.ru. It occupies 4.48 hectares, and has a floor space of 42,800 square metres.

The company employs 798 people, with monthly salaries averaging 59,000.

In the past five years, the company has invested 321 million roubles in corporate development projects. Its short-term plans include upgrading its production and administrative buildings. 

VG Contours, a company manufacturing cardboard package is located at 1A Chermyanskaya Street. Official website: vangenechten.com. The company is located on 0.52 of a hectare, and 3,900 square metres of floor space.

It employs 99 people, with monthly salaries averaging 77,000 roubles.

In the past five years, the company has invested 55 million roubles in corporate development projects. In the next five years, there are plans to repair its production shops.

Svyazstroidetal, a company manufacturing plastic pipes, extrusions, couplings, reinforced concrete structural elements, special tools, standard sections, and components of metal structures.

It is located at: 7A Yuzhnoportovaya Street. Official website: ssd.ru. It occupies 3.4 hectares, and has a floor space of 16,500 square metres.

The company employs 599 people, with monthly salaries averaging 59,000 roubles.

In the next five years, there are plans to launch production of plastic pipes for utility tunnels and to upgrade the production-technical department.

Dukhov All-Russian Research and Development Institute of Automatic Systems, a leading research and development organisationsof the Rosatom State Atomic Energy Corporation. The enterprise specialises in manufacturing security systems and operation systems for the defence industry complex. “Civilian goods include security systems, which will be used during the 2018 FIFA World Cup, and equipment for the oil and gas sector,” Mr Fursin added.

The enterprise is located at 5 Koshkina Street and 9 Luganskaya Street. Official website: vniia.ru. It occupies 4.96 hectares, and has a floor space of 70,800 square metres.

The company employs 5,923 people, with monthly salaries averaging 78,000 roubles.

In the next five years, there are plans to build design, laboratory-testing and supply-warehouse buildings and to comprehensively upgrade power supply systems.

The Vodny Stadion Sport Invest company also received technology park status, and the company now has the authority to manage the Vodny Stadion Technology Park. This company specialising in information security is located at: 39A Leningradskoye Motorway.

It occupies an area of 3.43 hectares, and has a floor space of 70,500 square metres. Its infrastructure includes collective use facilities, such as a 550 square metre convention hall and a 30 square metre co-working area.

The company employs 1,927 people. Kaspersky Laboratories is among the 12 companies leasing properties here. According to Mr Fursin, this company covers 75 percent of the technology park’s area and is planning to claim the anchor resident status. Eleven other smaller companies at Vodny Stadion develop computer software.

“The technology park’s goods are mostly aimed at foreign markets; the company exports 80 percent of its goods abroad,” Mr Fursin noted.

In the next five years, there are plans to upgrade the technology park’s lighting systems, HVAC systems and fire extinguishing and video surveillance systems, and to resurface access roads.

The Moscow Government Presidium also confirmed industrial complex status for Moscow Confectionery Krasny Oktyabr, Rot Front Confectionery, Bread Plant No 24, Moscow Mill Plant No 3, as well as technology park status for Fiztekh-21 Management Company and Module Science and Technology Centre.

Industrial complex and technology park statuses allow companies to obtain tax benefits from the city. A system for supporting the real economy’s companies and investors operates under city laws On Investment Policy of the City of Moscow and State Support for Parties to Investment Activity, and On Industrial Policy of the City of Moscow.

Incentives include profit, land and property tax benefits, as well as reduced land-plot lease rates. They allow investors to reduce their tax burden by 10-25 percent.

 

Benefit

Current rate

Reduced rate for industrial complexes

Reduced rate for technology parks

City profit tax

 

17 percent

12.5 percent

12.5 percent *

Property tax

2.2 percent of inventory value

50 percent of tax liability on taxable property

Zero percent for immovable property

 

Land tax

1.5 percent of cadastral value

20 percent of calculated tax liability (0.3 percent)

0.7 percent of calculated tax liability (0.01 percent of cadastral value)

Land lease rates

Up to 1.5 percent of cadastral value

0.3 percent of cadastre value

0.01 percent of cadastre value

 

* For technology park management companies and anchor residents.