Russian govt submits bill on tax breaks for Arctic investment projects to Duma
MOSCOW. Feb 6 (Interfax) - The Russian government has submitted a bill to the State Duma that would provide tax breaks to investors planning to implement new projects in the Arctic.
The amendments to the Tax Code (No. 895543-7), as well as amendments to the Tax Code (No. 895543-7, No. 895545) have been published on the lower house of parliament's electronic database.
The Ministry for the Development of the Russian Far East and Arctic drafted the bill.
The government considered and supported it at a meeting at the end of January.
According to the ministry's already approved proposals, economic support should be provided throughout the Arctic, without the creation of individual development territories or economic zones. Only new investment projects would be eligible for preferences, and they should not account for more than 25% of investment. The minimum level of investment per project is 10 million rubles.
All the Arctic preferences are to be provided for four groups of investment projects: offshore production of hydrocarbons, onshore production, production of LNG, and other projects. For all investment projects, Russian regions are permitted to zero out the regional component of the land tax, as well as profit and property taxes.
The ministry hopes the special economic regime will receive all necessary approvals and be introduced in July.