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Eastern Primorsky Territory among Russia’s first to offer tax privileges to big investors

VLADIVOSTOK, December 19, 7:10 /ITAR-TASS/. Russia’s Far Eastern Primorsky Territory is among the first to introduce tax privileges for big investors. On Thursday, the territorial Legislative Assembly passed a regional law allowing to offer tax privileges to big investors from January 1, 2014.

Companies offering investments projects that would create high-efficiency jobs will be exempt from income and property taxes for a period of the first five years of their work.

Tax privileges will be applicable to all new production facilities launched since January 1, 2013 on condition that their investments in the territorial economy are at least 150 million roubles (1 U.S. dollar roughly equals 32.9 roubles) in three years, or 500 million roubles in five years. An investment project is to be implemented in one of the top-priority economic areas, such as farming, fishing, mining or processing sector, chemical industry, electricity generation or distribution, etc.

“We are one of the first in Russia to consider initiatives aiming at improving the investment climate and measure to attract big investors to the Primorsky Territory,” said Viktor Gorchakov, the speaker of the territorial Legislative Assembly.

“These tax privileges will help us create competitive advantages for new companies in the Primorsky Territory. The year 2014 will see a breakthrough in the territorial development. We cannot afford to stand still, especially now when we have all the possibilities to make a headway,” Primorsky Territory governor Vladimir Miklushevsky noted.

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