A Number of the Smolensk Region`s Investors Will Be Eligible for Investment Tax Deduction

Within the framework of the Smolensk Regional Duma meeting, the deputies promoted a bill which establishes a right for investment tax deduction in the region when calculating income tax. The document was developed by the core-business Department upon an initiative of the Governor Alexey Ostrovsky and is aimed at decreasing investor tax burden.

The investment tax deduction is a total cost of acquisition, manufacture, delivery, further construction and modernization of fixed assets, by which it is allowed to reduce the income tax.

Amendments to the existing law provide for the establishment of the taxpayers right for the investment tax deduction on income tax for organizations operating in certain manufacturing sectors, health care, education, culture and sports. These changes are also applicable to the Phoenix and Safonovo State Industrial Parks residents, as well as small and medium enterprises that have concluded Agreement on performance of the Competitiveness of Enterprises (COSME) as the producers of regional significance with the Ministry of Industry and Trade of the Russian Federation.

The right for the investment tax deduction is also granted to state and municipal cultural institutions with regard to profit expenses, which were paid in the form of donations.

As stressed by the core-business department, taking these measures in the Smolensk Region will create additional conditions for attracting investors, modernizing the region`s existing enterprises, as well as will allow to find additional extra-budgetary funds for the cultural institutions development.