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MIL OSI Translation. Region: Russian Federation –

The issues of tax incentives were discussed.

The first meeting of the working group on investment development of the Government Commission on Economic Development and Integration headed by First Deputy Prime Minister Andrey Belousov took place.

The event was attended by representatives of the Ministry of Economic Development, the Ministry of Finance and the Federal Tax Service, as well as business associations – RSPP and Delovaya Rossiya.

The meeting participants discussed approaches to tax incentives for investment activities, as well as incentives for enterprises to channel net profit into investments in new projects and in fixed assets. Based on the results of the Russian Union of Industrialists and Entrepreneurs and Delovaya Rossiya, together with the Ministry of Economic Development, they will work out options for tax incentives, calculate their impact on investment growth and budget projections.

A joint proposal of the Ministry of Economic Development and the Ministry of Finance was discussed to reduce the tax burden on the tax on the extraction of a number of solid minerals (MET) by introducing an investment tax deduction from the amount of the MET from January 1, 2022 for those projects for which the amount of the MET will exceed the payment for 2021. This applies to projects for which a multiplying coefficient has been established since the beginning of this year.

The amount of the deduction is proposed to be determined based on the capital costs of the organization for the modernization of the existing or the creation of a new infrastructure and the amount of MET paid, but not more than 50% of the capital costs of the difference between the amount of the MET with an increased coefficient and the maximum amount of the MET calculated for one of the tax periods, the beginning of which falls on 2019-2021.

Business representatives generally supported the mechanism; within two weeks, the Ministry of Economic Development and the Ministry of Finance will additionally work on it with the Russian Union of Industrialists and Entrepreneurs.

The next meeting of the working group on investment development of the Government Commission on Economic Development and Integration will take place in two weeks.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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