The decision on additional tax benefits for enterprises that have entered into a special investment contract (SPIC) was made on April 6, 2022 at an extraordinary meeting of the Government of the Samara Region, which was chaired by the First Vice Governor - Chairman of the Government Viktor Kudryashov.
Several special investment contracts are currently in effect in the Samara Region. The largest of them was concluded with AvtoVAZ. The agreements spell out the obligations of the Government of the Samara Region and investors for mutual support. Investors are investing in the creation of new industries, equipment modernization. The government, in turn, provides assistance in the form of various benefits. This economic mechanism is designed to stimulate the development of competitive high-tech industries.
Thus, under a contract concluded in 2019 between the Government and AvtoVAZ, the company committed itself to invest about 70 billion rubles in production over 10 years, create new jobs, expand the localization of materials, parts and components, and introduce new technologies.
The draft law provides for investors participating in the SPIC to reduce the regional income tax rate to 10% and property tax to 1.1%. Preferences will allow attracting additional investments in the production of globally competitive products and open up opportunities for accelerated import substitution under the imposed sanctions restrictions. At the same time, it will not negatively affect the replenishment of the revenue part of the budget.
«The amount of tax payments to the consolidated budget of the Samara Region will not be less than the amount of benefits provided, which also ensures the budgetary efficiency of these tax benefits», - said Andrey Shamin, Minister of Industry and Trade.
The changes will affect investment contracts concluded after January 1, 2021. At the same time, profit tax preferences also apply to companies that signed a SPIC after 2019. If the deputies support the initiative, this will additionally support AVTOVAZ.
«This is a significant measure of support for the enterprise», - said First Vice Governor Viktor Kudryashov. - It can be considered both as an anti-crisis measure and as an additional incentive for new investments, including in the modernization of production, the creation of new cars. As you know, AvtoVAZ announced plans to create new modifications of cars with a minimum of imported components, which will enter the Russian market in the very near future».
In addition, additional tax support measures will allow the Samara Region to conclude new special investment contracts. The provision of a regional tax benefit is a condition for reducing the income tax rate to 0% in the federal part. This provision is spelled out in the federal law on industrial policy.
«The adoption of such measures will allow the investor to attract debt financing on more favorable terms, significantly improve the economics of the project, and will contribute to the growth of investments in the economy of our region», - the chairman of the regional government emphasized.
The document was submitted for consideration by the Samara Provincial Duma.
«The mechanism of a special investment contract makes it possible to attract large private investments in regional projects, - comments Sergey Nikitin, Executive Director of the Investment Promotion Agency of the Samara Region. - The state, for its part, guarantees such an investor favorable and understandable conditions for investments, including tax incentives and special conditions for renting land without bidding».