Russian developers, producers of certain types of chemical products to receive tax preferences - govt

MOSCOW. Dec 19 (Interfax) - Russian Prime Minister Mikhail Mishustin has signed a resolution on developing and producing certain types of chemical products that are included in the list of types of scientific research and development work whose expenses are accounted in order to reduce tax payments.

"The updated list includes another 26 technologies for producing chemicals. Among these are fertilizer and products to protect plants, formulations for oil production, detergents, derivatives for cosmetics, additives for plastic and rubber, additives for fuels and lubricants, disinfectants, raw materials for the pharmaceutical sector, as well as substances for food additives," the government said in a statement posted on its website on Monday.

As noted, expenses for research and development included in the government's list are exempt from the base for calculating tax on profits. They are classified as other expenses at an increasing ratio of 1.5, thus tax payments themselves are reduced.

"The decision should incentivize developing domestic low-tonnage and medium-tonnage chemicals amid the external restrictions," according to the statement.

The signed document has amended the government decree No. 988 dated December 24, 2008.