Provision of tax incentives
Approved investment project
Priority investment project
Subsidies to investors
Approved investment project
Priority investment project
Approved investment project
Approved investment project
The procedure for providing tax benefits to investors implementing approved investment projects in the Smolensk region is regulated by::
– Regional Law of 23.12.2002 No. 95-z “On State Support of Investment Activity in the Territory of the Smolensk Region”;
– Regional Law of 28.04.2003 No. 16-z “On Tax Benefits Granted to Investors Implementing Approved Investment Projects of the Smolensk Region” ;
– Decree of the Administration of the Smolensk region of 07.09.2016 No. 541 “On Approval of the Procedure for Conducting Economic Examination and Selection of Investment Projects for Inclusion in the List of Approved Investment Projects in the Smolensk Region”
Approved investment project of the Smolensk region:
is aimed at creating new production facilities for manufacturing goods or a new facility (new facilities) for heat supply; at reconstruction, and (or) technical re-equipment of the object (objects) of fixed assets for the production of goods or a heat supply facility (facilities); ;
is implemented by an investor registered in the territory of the Smolensk region;
is included in the list of approved investment projects in the Smolensk region.
The volume of capital investment of the approved project aimed at creating new production facilities for manufacturing goods or a new facility (facilities) for heat supply should be:
from 50 to 300 million rubles (excluding VAT) for SMEs;
from 100 to 300 million rubles (excluding VAT) for legal entities that are not SMEs.
When determining the volume of capital investments the costs for the construction and (or) expansion of the facility (facilities) of fixed assets, including costs for design and survey work as well as costs for the acquisition of new fixed assets are taken into account.
The minimum volume of capital investments of an approved project aimed at the reconstruction and (or) technical re-equipment of an object (objects) of fixed assets for the production of goods or a heat supply facility (facilities) should be:
- 50 million rubles (excluding VAT) for SMEs,
- 100 million rubles (excluding VAT) for legal entities that are not SMEs.
The maximum period for granting state support is equal to the estimated payback period of the investment project, however, it should not exceed: 3 years – at the sum of capital investments less than 300 million rubles (without VAT), 5 years - with the amount of capital investments after three years from the date of assignment of the approved project status to the investment project 300 million rubles (without VAT) and more.
When determining the volume of capital investments expenses for the reconstruction and (or) technical re-equipment of an object (objects) of fixed assets, including costs for design and survey work, as well as expenses for the acquisition of fixed assets are taken into account.
Investors implementing the approved investment projects in the Smolensk region are granted the following benefits:
– establishment of the rate on profit tax , of organizations in the part of the profit received from the project implementation in the amount of 13,5 % with respect to the tax that is credited to the regional budget;;
– exemption from payment of property tax of organizations in respect of property created (erected, reconstructed) and (or) acquired as a result of the approved investment project implementation in the Smolensk region.
Selection of investment projects for inclusion in the list of approved investment projects in the Smolensk region is carried out on a competitive basis.
How to get tax benefits?
|
A notice on the selection of investment projects is published in the media at least 30 calendar days before the deadline for the receipt of applications and all the documents required for participation in the competition are placed on the website of the Department for Investment Development of the Smolensk region (http://dep.smolinvest.com), on on the Investment Portal of Smolensk (www.smolinvest.com), as well as on the website of the Administration of the Smolensk region (www.admin-smolensk.ru) in the section “All-Russian and regional competitions”. |
⇓
|
The investor is expected to submit an investment application and the necessary documents for participation in the selection to the address: 214025, Smolensk, Poltavskaya Str. 8A, office 603. Contact phones: (4812) 20-55-41, 20-55-39, 20-55-36. |
⇓
|
Conditions of participation in the selection - the investment project is aimed at creating new production capacities for manufacturing goods or a new facility (new facilities) for heat supply. The volume of capital investments of the investment project (without VAT) should be: - from 50 million rubles to 300 million rubles for small and medium-sized enterprises, - from from 100 million rubles to 300 million rubles for legal entities and individual entrepreneurs who are not subjects of small and medium-sized business; - the investment project is aimed at the reconstruction, and (or) technical re-equipment of an object (objects) of fixed assets for the production of goods or the heat supply facility (facilities). The minimum volume of capital investments of an investment project (without VAT) should be - from 50 million rubles for small and medium-sized enterprises, - from 100 million rubles for legal entities and individual entrepreneurs who are not subjects of small and medium-sized business. |
⇓
|
Verification of the submitted documents by the Investment Development Department of the Smolensk region (organizer of the selection) and subsequent decision-making: - on the admission to the economic examination of the investment project; - on the need to submit any missing documents within a period not exceeding 3 working days from the date of written notification to the investor by the selection organizer; - on the refusal to admit the investment project to participate in the selection (it is brought to the investor in writing with a justification of the reasons for the refusal). |
⇓
|
Economic examination of the investment project is conducted within a period not exceeding 45 working days. |
⇓
|
Criteria for selection of investment projects: - social significance of the investment project; - accumulated positive budgetary effect from the implementation of the investment project; - positive net discounted income; - the estimated payback period of the investment project does not exceed 7 years; - maximum value of the profitability index of the granted tax incentives. |
⇓
|
Meeting of the Commission on Investment Policy пunder the Administration of the Smolensk region. Making the decision to include the investment project in the list of approved investment projects in the Smolensk region. |
Priority investment project
Priority investment project
The procedure for providing tax incentives to investors who implemented priority investment projects in the Smolensk region is regulated by:
Priority investment project of the Smolensk region:
is aimed at creating new production facilities for manufacturing goods or a new heat supply facility;
is implemented by an investor registered in the territory of the Smolensk region;
provides for capital investments in the amount of at least 300 million rubles (excluding VAT);
is included in the list of priority investment projects in the Smolensk region.
Having implemented priority investment projects in the Smolensk region, investors are entitled to the following benefits:
– on property tax of organizations in respect of property built and acquired as a result of the priority investment project implementation in the Smolensk region to create new production facilities for the goods manufacturing or a new facility (new facilities) for heat supply;
– on corporate profit tax , in the part of the profit received from the project at a rate of 13,5 % in respect of the tax that is credited to the regional budget.
Selection of investment projects for inclusion in the list of priority investment projects in the Smolensk region is carried out on a competitive basis.
How to get tax benefits
|
A notice on the selection of investment projects is published in the media at least 30 calendar days before the deadline for the receipt of applications and all the documents required for participation in the competition are placed on the website of the Department for Investment Development of the Smolensk region (http://dep.smolinvest.com), on the Investment Portal of Smolensk (www.smolinvest.com), as well as on the website of the Administration of the Smolensk region (www.admin-smolensk.ru) in the section “All-Russian and regional competitions”. |
⇓
|
The investor is expected to submit an investment application and the necessary documents for participation in the selection to the address: 214025, Smolensk, Poltavskaya Str. 8A, office 603. Contact phones: (4812) 20-55-41, 20-55-39, 20-55-36. |
⇓
|
Conditions of participation in the selection: – the investment project is aimed at the creation of new production facilities of heat supply; – the period of the investment project implementation does not exceed 5 years; – – the volume of capital investment involved in the investment project is not less than 300 million rubles (excluding VAT); – the starting date of the investment project implementation should not be earlier than January 1 of the second year preceding the year of filing the investment application. |
⇓
|
Verification of the submitted documents by the Investment Development Department of the Smolensk region (organizer of the selection) and subsequent decision-making: - on the admission to the economic examination of the investment project; - on the need to submit any missing documents within a period not exceeding 3 working days from the date of written notification to the investor by the selection organizer; - on the refusal to admit the investment project to participate in the selection (it is brought to the investor in writing with a justification of the reasons for the refusal). |
⇓
|
Economic examination of the investment project is conducted within a period not exceeding 45 working days |
⇓
|
Effectiveness indicators of the investment project: – social significance of the investment project; – accumulated positive budgetary effect from the implementation of the investment project; – value of the profitability index of the granted tax incentives. |
⇓
|
Meeting of the Commission on Investment Policy under the Administration of the Smolensk region. Making the decision to include the investment project in the list of approved investment projects in the Smolensk region. |
Approved investment project
Approved investment project
To the investors who realize approved investment projects in the Smolensk region
it is provided subsidies for compensation of a part of costs of payment of percent on the creditsм,taken for implementation of the approved investment projects of the Smolensk region:
· at a rate of 2/3 actual costs нbut no more than 2/3 current rates of refinancing of the Central Bank of the Russian Federation on a date of payment of percent by the investor within the limits provided by the regional law on the regional budget for the financial year. Subsidies on the credits pay off within the sums confirming intended use of the credit.
Priority investment project
To the investors who have realize priority investment projects in the Smolensk region
- in the priority branches of economic activity (connected with flax processing, food production, pharmaceutical production, medical equipment, electronic and optical products, etc.);
- on condition of investments in the sum not less than 3 billion rubles (without VAT);
- and creation not less than 200 new workplaces;
it is provided subsidies in a size which isn't exceeding actually come to the regional budget for the previous year of the organizations received as a result income taxof the organizations received as a result of implementation of the investment project.