All support measures of the region Novgorod Region

Tax allowances for the investment project approved by the Government of Novgorod region

Main measure of support

Tax rate for the corporate profit tax which is to be paid into the consolidated budget of the region, is 13,5%. Tax rate for the property of the organizations implementing investment projects approved by the Government of Novgorod region is 0%. Transport tax is paid in the amount of 50 per cent of the established rate.

Terms of support

Tax allowances are provided to the investors who implement in Novgorod region investment projects approved by the Government of Novgorod region, except for the projects:
1. estimated payback period of which is less than one year;
2. which are implemented at the expense of the budget money from the budget system of the Russian Federation and extra-budgetary funds, attracted on a gratuitous basis, except for the projects of the organizations of the military-industrial complex – main executors (co-executors) of the state defense order which participate in implementing state programs of the Russian Federation;
3. implemented in the following sectors of national economy:
- wholesale and retail trade;
- repairing vehicles, motorcycles, household and personal items (chapter G ОК 029-2001);
- food service (subclasses 55.3, 55.4, 55.5 of class 55 chapter Н ОК 029-2001);
- financial activity (chapter J OK 029-2001);
- real estate operations (class 70 chapter К ОК 029-2001);
- rent of machinery and equipment without an operator;
- rent of household and personal items (class 71 chapter К ОК 029- 2001);
- providing other types of services (class 74 chapter К ОК 029-2001).

Support restrictions

Investor has the right to take advantage of tax allowances for the organization as a whole, if the share of revenue from the sale of products within the investment project is at least 65% in the total revenue of the organization for the tax period.

If the share of revenue from the sale of products is less than 65% in the total revenue, investor has the right for the allowances in terms of taxes attributable to the investment project.

An investor applying for approval of the investment project by the Government of Novgorod region in order to get tax allowances must meet the following requirements:
1) not to be in the process of reorganization or liquidation;
2) insolvency (bankruptcy) proceedings have not been initiated against the investor according to the legislation of the Russian Federation;
3) the investor’s property has not been seized ore foreclosed;
4) not to be a member of a consolidated group of taxpayers.

Type of instrument
Tax incentives
Duration of support
Novgorod Region
Body providing support
Authority Government of Novgorod region
Recipients of support
  • Micro enterprise (business)
  • Small enterprise (business)
  • Medium enterprise (business)
  • Large enterprise (business)
  • Individual entrepreneur
  • Exporter
  • Innovator (start-up)
  • Investor
  • Farm (peasant) economy

List of documents required to receive support

1) application for approval of the investment project by the Government of Novgorod region in order to give tax allowances;
2) business-plan of the investment project, demonstrating the profitability of the investment project, budget and social effect for the region’s economy. The plan must be approved by the investor, have passed an independent expertise which confirms the specified parameters. The expert who carries out the expertise is chosen by the investor;
3) calculation of the payback period of the investment project considering tax allowances and excluding tax allowances according to the requirements regional law;
4) copies of annual accounting (financial) report for the last accounting year, including balance sheet, financial results statements and annexes thereto, submitted to the tax authorities with the mark on their acceptance, and the data of balance sheet for the current accounting period;
5) administrative document on tax and bookkeeping accounting policy of the investor for the corresponding years;
6) documents confirming financing of the investment project;
7) building permit if, according to the Urban planning Code of the Russian Federation, it is necessary to get this permit for implementing the investment project;
8) certificates on absence of depts to the budgets of the budget system of the Russian Federation and Federal extra-budgetary funds, issued by tax authorities and authorities controlling payments of insurance premiums no earlier than one month before the date of application.

Regulatory document

Regional law of Novgorod region from 28.03.2016 No 945-OZ “On investment activity in Novgorod region and protecting investors’ rights”