Deputies of the Moscow City Duma supported in the first reading a bill establishing an investment tax deduction in Moscow. Additional support will be given to metropolitan enterprises that are engaged in the development and updating of products.
According to Maria Bagreeva, First Deputy Head of the Department of Economic Policy and Development of the City of Moscow, the law should be another effective mechanism to increase the competitiveness of enterprises operating in the city.
“Enterprises that invest in updating their funds will be able to compensate themselves for this cost with the help of income tax. That is, income tax will be reduced by the cost of fixed assets aimed at modernizing enterprises, due to the reduced income tax rate,” said Maria Bagreeva.
It is assumed that the share of expenses on the acquisition of fixed assets, which can be deducted from income tax, will be 90 per cent. According to the Tax Code, this is the maximum possible value.
According to the first deputy head of the department, companies and enterprises that meet the following criteria will be able to apply for benefits: location in Moscow, the status of a capital investor investing at least 100 million rubles in fixed assets during the year. At the same time, the introduction of an investment tax deduction does not provoke the loss of city budget revenues.
“Moscow continues to do everything possible to increase the investment attractiveness of the capital. In the near future, after the adoption of the law, it is proposed to create a working group that will determine the criteria for granting the status of a Moscow investor,” said Elena Nikolaeva, head of the My Moscow deputy association in Moscow City Duma.
A similar tax deduction is already in effect in 13 subjects of Russia, in ten of them the manufacturing sector is stimulated. Enterprises engaged in the field of mining, tourism, collection, processing, disposal of waste, transportation activities also receive tax benefits.
“We compete with other regions, as well as with global megacities for attracting investments. The adoption of the bill will be an additional advantage for the capital in the struggle for investment,” said Kirill Shchitov, chairman of the MCD Committee on Security, Sports and Youth Policy.
According to the bill, after adoption, the document will enter into force on January 1, 2020, and will be valid until January 1, 2028.