Investment tax deduction on income tax

Entrepreneurs investing significant resources in the development of productions in Moscow may receive an income tax benefit.

WHAT it GIVES

Preferential rate of the regional part of income tax gives:

12.5% – for organizations that received the status of a Moscow Investor of the 1st category;
8% – for organizations that received the status of a Moscow Investor of the 2nd category.

Due to the benefits, it is possible to write off:

In terms of regional tax - up to 90 % of investments in fixed assets;
In terms of federal tax - up to 10 % of investments in fixed assets.

The unused amount of benefits can be performed for more than 7 subsequent tax periods.

WHO CAN GET

Companies based in Moscow:

leading activities in the field of manufacturing;
received the status of a moscow investor of the 1st or 2nd category.

HOW TO GET

To obtain the status of a Moscow investor of the 1st category, the minimum annual investment amount must be 200 million rubles, for the 2nd category - 300 million rubles.
Invest in fixed assets belonging to the 3-10th depreciation groups (except for the 8-10th depreciation groups of buildings, structures and transmission devices). What it is can be found in the Government Decree of 01.01.2002 No. 1 (as amended on 27.12.2019) "On the classification of fixed assets included in depreciation groups."
The coefficient of renewal of fixed assets of the enterprise must be at least 8% for the last year or at least 35% for the last five years.
The average monthly salary of employees must not be less than the average monthly salary in Moscow.

REFERENCE

Capital industrial companies have received the right to an investment tax deduction since January 2020. The first to use the new preference in December of the same year was the packaging manufacturer "Smerfit Kappa Moscow Soyuz" JSC, and in March 2021, the largest food and beverage manufacturer in Russia, "Wimm-Bill-Dann" JSC, received the right to an investment tax deduction. Both companies have been assigned the status of Moscow investor of the second category - the income tax rate for them will be 8%.

List of documents

An online application for assignment of the Moscow investor status is submitted on the Moscow Investment Portal. The following copies must be attached to the application:

of documents confirming the authority of the person to sign the application and submit documents on behalf of the applicant;
of reports containing basic information about the applicant's activities in Moscow;
of reports containing information on investment activities;
of certificates - confirmation of the main type of economic activity;
of forms of calculation for the accrued and paid insurance premiums for compulsory social insurance against industrial accidents and occupational diseases, as well as for the costs of payment of insurance coverage;
of tax declaration for corporate income tax;
of reports containing information on the availability and movement of fixed assets (fa) and other non-financial assets;
of documents confirming the costs of the acquisition, construction, manufacturing, delivery and bringing to a state in which the fixed asset is suitable for use, as well as confirming the costs of completing, additional equipment, reconstruction, modernization, technical re-equipment of fixed assets in the year of application for assignment of status or in the last year preceding the year of application;
of inventory cards for accounting of fixed assets for its operation at the applicant's production site in Moscow.

TERMS OF CONSIDERATION OF THE APPEAL – 30 WORKING DAYS

Contacts:

Moscow Investment and Industrial Policy Department

Services:

Investment tax deduction

Site:

Apply online at the Moscow Investment Portal

Comments

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