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Government support for investments

A decision on granting specific forms of government support to entities involved in investment activity is made by Tomsk Oblast Administration Coordinating Council for Investment Activity Support and Government Guarantees chaired by Oksana Kozlovskaya, First Deputy Governor of Tomsk Oblast.

Regulations on the Council and its structure are approved by Resolution of the Chief Administrator (Governor) of Tomsk Oblast No. 120 of May 27, 2003. The Coordinating Council makes a decision on granting specific forms of government support to an entity involved in investment activity and entering its investment project into the Register of Investment Projects in Tomsk Oblast within two months from the date of submitting the application.

There are the following forms of government support available to individual entrepreneurs and commercial organizations implementing investment projects.

1. Corporate profit and property tax concessions В ссылку следующую информацию: Relief from corporate property tax in relation to fixed assets created and (or) acquired and put into operation under investment projects ­- 50% of the tax amount paid to the Oblast budget.

The corporate property tax concession is granted for the period of 5 years starting from the first day of the month following the month when the fixed assets item was put into operation.

Assessment of corporate profit tax paid to the Oblast budget — at a rate of 13.5% with the total amount of the corporate profit tax concession not exceeding 5.26% of the value of fixed assets created and (or) acquired and put into operation under the investment project.

The tax preferences listed above are granted in accordance with the Law of Tomsk Oblast No. 30-ОЗ ‘On granting additional tax concessions to organizations pursuing investment activity in Tomsk Oblast’ of March 18, 2003.

2. Investment tax credit

Investment tax credit can be granted for the corporate profit tax paid to the Oblast budget, and for regional taxes.

The amount of the corporate profit tax credit is 30% of the value of equipment acquired under the investment project; corporate property tax credit is 100% of the value of equipment.

The interest rate for both investment tax credits is 0.5 of the refinancing rate of the Russian Central Bank. The interest rate for investment tax credits for other regional taxes is 0.75 of the refinancing rate of the Russian Central Bank.

The investment tax credit is granted for a period from one to five years.

Procedure and conditions for granting the investment tax credit are regulated by the Law of Tomsk Oblast No. 31-ОЗ ‘On investment tax credit in Tomsk Oblast’ of March 18, 2003.

3. Subsidies

Economic entities implementing investment projects in Tomsk Oblast are eligible for subsidies of costs incurred in the course of implementing investment projects, including subsidies of part of the costs in relation to:

1) interest rates under credit agreements

The amount of the subsidy is 8% per annum but no greater than the amount of the interest rate paid under the credit agreement and no greater than 2.5m rubles per annum.

2) lease payments under financial leasing agreements

The amount of the subsidy is 8% per annum of the remaining amount of lease payments (total amount of payments under the leasing agreement throughout its entire period (less cash surrender value of the leasing item) net of advance payments (security deposits and the earnest payment) and leasing payments) but no greater than 2.5m rubles per annum.

3) fees under franchise and sub-franchise agreements

Subsidies are granted in the following manner:

• fixed lump sum fee — 50% of the fixed lump sum amount but no greater than 2.5m rubles
• ongoing fees — 50% of the amount of the ongoing fees but no greater than 2.5m rubles
• percentage on revenue — 0.5% of the percentage set out in the agreement but no greater than 2.5m rubles

4) preparation of corporate bond issues

Subsidies are granted in the amount not exceeding actual costs incurred for preparation of a corporate bond issue but no greater than 2.5m rubles.

5) servicing corporate bonded debts

Subsidies are granted upon termination of a regular coupon period in the amount of 8% per annum of the total value of the bonds issued to raise funds for the investment project which shall be spent on creation, modernization, and acquisition of fixed assets, but no greater than 2.5m rubles.

6) payment for connection to electricity

One-off subsidies in the amount of 50% of the payment for connection but no greater than 2.5m rubles.

7) commission fees for establishing and maintaining letters of credit

Subsidies are granted in the amount of 50% of actually paid commission fees for establishing and maintaining letters of credit (including the fees paid to the issuing bank for establishing and accepting the letter of credit, immediate payment against documents (discounting), and payment under the letter of credit) but no greater than 2.5m rubles.

Procedure and conditions for granting subsidies are regulated by Resolution of Tomsk Oblast Administration No. 27a ‘On granting subsidies to partially reimburse costs incurred for manufacture (sale) of products, execution of works, and provision of services under investment projects’ of February 22, 2008.

The procedure for expert review of the projects seeking government support is approved by Order of Tomsk Oblast Governor No. 294-р of June 4, 2007.

The Department of Investments of Tomsk Oblast Administration submits issues on provision of government support to entities involved in investment activity for consideration by the Coordinating Council.

Consultations on preparation of the application and project consideration procedures are provided by:

Larisa Kodatenko
Deputy Chairman of Investment Policy Committee
Department of Investments of Tomsk Oblast Administration
Tel.: +7(3822)510860
E-mail: kolast@tomsk.gov.ru
6 Lenin Square
634069 Tomsk

Tomsk Oblast also implements programs for support for small and medium business funded from the federal and regional budgets.

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