The Law "On the protection and promotion investments", adopted in April 2020, guarantees freezing of the tax burden under an investment project for a period of up to 20 years and provides for compensation of the infrastructure investments by the state.
As part of the implementation of this idea, the Prime Minister of Russia signed two government decrees which are the most important by-laws that make it technically possible for the SZPKs to be implemented. The first approves the rules for concluding the SZPKs with the investors, its standard form, terms and conditions of amendment and termination. The Ministry of Economic Development will have the right to sign the SZPKs on behalf of the state. The second determines the procedure for providing compensations for the construction of additional infrastructure - the costs of building and modernizing transport, energy, utilities and information systems necessary for the successful launch of investment projects. In addition, the federal budget will reimburse the interest on loans and coupon income on bonded loans attracted for investment purposes. Reimbursement of costs is estimated to take from 5 to 11 years depending on the type of infrastructure facility and the terms of the agreement.
Until April 2021, the system will operate in a “pilot mode” and the agreements will be signed in a paper form. Then, the "Investment" information system is expected to be launched. It will provide support to the investors through the Investment Development Agency and ensure prompt consideration of applications - up to 60 days, as well as a minimum of documentation.
By the end of this year, the government expects to sign more than 20 agreements worth 900 billion rubles, and by 2024 - at least 1,000 agreements worth 14.1 trillion rubles. New SZPK regime will not apply to the gambling business, the production of tobacco and alcoholic beverages, liquid fuels, as well as the production of oil and gas.
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NAZALI TAX & LEGAL |