Corporate property tax relief for the implementation of an investment project

Terms of support

• Inclusion in the Register of investment projects of the Kostroma region and conclusion of an investment agreement;
• Compliance with priority areas of investment activity of the Kostroma region (Order of the Kostroma region administration No. 382-RA dated 03.12.2009);
• The total amount of capital investments expected by the investment project (in the social sphere-not less than 10 million rubles, in the territory of industrial districts-not less than 15 million rubles, for other investment projects-not less than 30 million rubles);
• The ratio of the amount of tax revenues to the consolidated budget of the Kostroma region to the amount of support provided for the payback period of an investment project should be at least 1.3.

Support restrictions

Period of granting benefits (the decision is made by the investor based on the financial and economic justification of the project):
Option I:
Exemption from corporate property tax for the payback period of the project when investing:

• from 10 to 100 million rubles — during three tax periods —
• from 100 to 300 million rubles — during four tax periods;
• over 300 million rubles — during five tax periods.
• After the end of the exemption period, but within the estimated payback period of the investment project, in the following consecutive tax periods, tax rates are set:
• 0.5% — during one tax period
• 1% — during one tax period;
• 1.5% — during one tax period.

Option II:
Exemption from corporate property tax for five tax periods after the completion of the investment project.
Completion of an investment project is considered to be the simultaneous fulfillment of the following conditions:

• the entire amount of capital investments provided for in the business plan of the investment project was made no more than during the first five years of the project implementation;
• all fixed assets have been put into operation or completed, the creation, acquisition, reconstruction, and modernization of which are provided for in the project’s business plan.