Renault to obtain preferential profit tax rate in Moscow
MOSCOW. May 17 (Interfax) - The Moscow Duma has backed a reduction in the profit tax rate from 17% to 12.5% in 2018-2020 for companies manufacturing automobiles in Moscow, with Renault, which has an assembly plant in the capital, the primary beneficiary.
Deputies on Thursday in broad terms passed a bill that establishes a reduced profit tax rate for entities which have the status of a motor vehicle manufacturer conducting operations in Moscow, an Interfax correspondent reported.
The bill proposes that these enterprises be exempted from property taxes and have their profit tax rates reduced from 17% to 12.5%.
Entities may be eligible for this form of state support only after they confirm their status as a manufacturer of motor vehicles conducting operations in Moscow. This bill first and foremost concerns Renault, which operates in the capital, the deputies said.
Legislators backed the bill as it will aid in development of auto production and consequently, generate additional revenue for the city budget.