On state support for investment entities

In accordance with the Laws of the Republic of Tatarstan dated 11/25/1998 No. 1872 "On Investment activities in the Republic of Tatarstan", dated 11/28/2003 No. 49-ZRT "On Corporate Property Tax", dated 08/02/2008 No. 53-ZRT "On setting the Corporate Income Tax rate for certain categories of taxpayers" to investors implementing investment projects, It provides for a reduction in the income tax rate credited to the budget of the Republic of Tatarstan to 13.5%, and a reduction in the tax rate to 0.1% on property newly created or acquired by the organization for the implementation of the project.

These benefits are provided to legal entities of all forms of ownership implementing investment projects to create new production facilities in accordance with the priorities of the investment policy of the Republic of Tatarstan, determined by the annual investment memorandum of the Republic of Tatarstan. At the same time, the grace period from the start of investments cannot exceed 7 years, and in the engineering industry, tax benefits can be granted for up to 13 years.

At the same time, it should be noted that for projects implemented at existing enterprises, the provision of tax benefits is possible only for property taxes.

Among the mandatory conditions for providing state support is the priority of the investment project being implemented (in order to give it the appropriate status, it must be included in the List of Priority Investment Projects of the Republic of Tatarstan).

To be included in the list, it is necessary to submit the passport of the investment project to the Ministry of Economy of the Republic of Tatarstan and the branch ministry according to the attached form.

Also, in order to consider the possibility of providing tax benefits, it is necessary to send to the Ministry of Economy of the Republic of Tatarstan an application for state support, including a business plan for the investment project and copies of supporting documents.

Detailed requirements for the applicant, the investment project, the composition and form of the application documents are set out in the resolutions of the Cabinet of Ministers of the Republic of Tatarstan.:

- dated 05/07/1999 No. 284 "On Approval of the Regulation on the Procedure for Providing State Support to Enterprises and Organizations Implementing Investment Projects in the Republic of Tatarstan";

- dated 07/24/2006 No. 377 "On Approval of the Regulations on the Procedure and Conditions for Concluding an Agreement on the Implementation of an Investment Project between an Investment Entity and the Ministry of Economy of the Republic of Tatarstan and the form of an Agreement on the implementation of an Investment Project".

Thanks to the mechanism of the Investment Memorandum in the Republic of Tatarstan, the following PPP projects have received extensive government support:

1) "Construction of a rehabilitation medical center in the Republic of Tatarstan" (LLC "PremiumStroy-Invest", Kazan);

2) Creation and operation of the sports infrastructure facility "Physical culture and recreation complex "Center of sports of physical education" in the city of Almetyevsk;

3) Creation and operation of the sports infrastructure facility "Physical culture and recreation complex "Physical Education Center" in the city of Naberezhnye Chelny;

4) Production of a wide range of reinforced concrete products for road construction, including premium paving slabs (Kogen Kazan LLC, Kazan);

5) "Construction of the Shali (M-7) – Naratlyk highway as part of the construction of the Shali (M-7) – Bavly (M-5) toll highway in the development of the new route of the Kazan–Orenburg federal highway in the Republic of Tatarstan" (Avtostrada JSC, Pestrechinsky, Arsky, Vysokogorsky, and Atninsky municipal districts);

6) "Construction of the Alekseevskoye– Almetyevsk highway as part of the construction of the Shali (M-7) – Bavly (M-5) toll highway in the development of the new route of the Kazan–Orenburg federal highway in the Republic of Tatarstan" (Avtostrada JSC, Alekseevsky, Chistopolsky, Novosheshminsky, Cheremshansky, Almetyevsk municipal districts);

7) "Creation of a production and logistics complex for the rental and industrial processing of textiles in the Republic of Tatarstan" (LLC "Master Cleaning", Kazan).