Public Budget Investment in Stavropol Krai

Public budget investment can be provided for capital construction of units of public ownership. This funding is provided as capital investment in the major assets of regional public unitary enterprises founded with a right of operational management, as well as autonomous and public companies operating in the region.

Subsidies are available within amounts as envisaged in the specially developed program, and within the availability of the regional budget, which is subject to the Stavropol Krai Law on the regional budget for the respective year and the planned period (hereinafter – limits for public budget obligations for providing subsidies); such subsidies will be finally brought to the clients (public clients) for the respectively registered purposes.

Decision by Stavropol Krai Government (of 03/07/2014;
№ 257-п) On Approving Rules for Capital Investment in Public Property of Stavropol Krai from Public Budget Funds.

Other reasons and terms for investment tax credit.

Additional grounds for investment tax credit on property tax for companies.

Investment tax credit on property tax for companies is offered at the rate of 100 per cent of the cost of equipment purchased by the respective company.

Stavropol Krai Law (of 28/11/2006; № 83-кз On Investment Tax Credit).

Tax benefits for those involved in investment activities – tax benefits available on income tax for companies regarding:

1. Investors implementing in Stavropol Krai projects, which meet the requirements for the priority investment areas in the region, which also are residents of the regional industrial parks and regional tourism-recreation parks:

4.5 per cent – for the calculated payback period as defined within the investment project;

2.5 per cent – after the payback period for the term of running investment activity, yet not exceeding a term of 20 years.

2. Investors implementing in Stavropol Krai meaningful investment projects:

3.5 per cent – at investing capital within an especially meaningful investment project with a total sum of RUR 300-500 mln;

4 per cent – at investing capital within an especially meaningful investment project with a total sum of RUR 500-1000 mln;

4.5 per cent – at investing capital within an especially meaningful investment project with a total sum above RUR 1000 mln.

3. For companies performing their major economic activity subject to the General Russian Classifier for economic activities within Group 11.10 Extracting Crude Oil and Natural Gas, Group 11.20 Services on Crude Oil and Natural Gas Extraction; those investing in Stavropol Krai into major funds, and at a rate at least not below the sum gained through applying the privileged tax on companies income within the current tax period:

reduced by 2.5 per cent.

4. For companies performing their major economic activity subject to the General Russian Classifier for economic activities within Group 11.10 Extracting Crude Oil and Natural Gas, Group 11.20 Services on Crude Oil and Natural Gas Extraction; those investing in Stavropol Krai into major funds, and at a rate at least not below the sum gained through applying the privileged tax on companies income within the current tax period shall be reduced by 2.5 per cent.

41. For investors implementing in Stavropol Krai projects meaningful projects and who are part of a consolidated group of tax-payers:

3.5 per cent – at investing capital within an especially meaningful investment project with a total sum of RUR 1000-2000 mln;

4.0 per cent – at investing capital within an especially meaningful investment project with a total sum of RUR 2000-3000 mln;

4.5 per cent – at investing capital within an especially meaningful investment project with a total sum exceeding RUR 3000 mln.

Cl. 13 of Stavropol Krai (of 01/10/2007; № 55-кз On Investment Activity in Stavropol Krai) stipulates property tax exemption for

Companies-residents of special economic zone;

Companies-residents of regional industrial parks; regional tourism-recreation parks; regional technology parks;

Basic companies of regional technology parks;

For companies – regarding their property that was developed or purchased by the company-investor in Stavropol Krai within an Investment Agreement signed with Government of Stavropol Krai for projects implying total investment above RUR 50 mln;

Companies-investors implementing in Stavropol Krai investment projects in the area of preschool education regarding construction (reconstruction) of capital building units.

Stavropol Krai Law (of 26/11/2003; № 44-кз On Companies Property Tax).

Decision by Government of Stavropol Krai (of 28/11/2013; № 434-п On Approving Procedure for Entering, Monitoring, and Terminating Investment Agreement).

Privileged rental payments

70 per cent discount on the rent rate for employing public property owned by Stavropol Krai and used within an investment project, which belongs to the priority areas of investment activity in Stavropol Krai;

95 per cent discount on the rent rate for employing production facilities and offices, buildings, equipment, and other resources owned by Stavropol Krai and required to conduct activities of regional technology parks within an investment project, which belongs to the priority areas of investment activity in Stavropol Krai.

Cl. 16 of Stavropol Krai Law (of 01/10/2007; № 55-кз On Investment Activity in Stavropol Krai).

Offering Public Government Guarantee to Agents involved in investment activities

Offering legal entities and municipal formations of Stavropol Krai public guarantees of Stavropol Krai Government. Investors implementing projects which belonging to the priority areas of investment activity in Stavropol Krai who also employ bank loans may join a contest and be eligible to enjoy Stavropol Krai public budget guarantee to support their obligations to the respective financial-loan institutions.

Cl. 17 of Stavropol Krai Law (of 01/10/2007; № 55-кз On Investment Activity in Stavropol Krai).

Stavropol Krai Law (of 30/07/2008; № 54-кз On Procedure for Providing Public Government Guarantee in Stavropol Krai).

Decision by Government of Stavropol Krai (of 15/04/2009;
№ 106-п On Measures for Implementing Stavropol Krai Law On Procedure for Providing Public Government Guarantee in Stavropol Krai).

Bonded and guaranteed special loans

Determine the procedure for emission and circulation of public bonds of Stavropol Krai (herein after – bonds) whereas their nominal cost shall be expressed in the official currency of the Russian Federation.

Cl. 18 of Stavropol Krai Law (of 01/10/2007; № 55-кз On Investment Activity in Stavropol Krai).

Decision by Government of Stavropol Krai (of 21/05/2008;
№ 76-п On Approving General Terms for Emission and Circulation of Public Bonds of Stavropol Krai).

Investment fund of Stavropol Krai

Determines the procedure for developing and employing budget provisions of the investment fund of Stavropol Krai (hereinafter – Krai investment fund) to implement in Stavropol Krai investment projects based on public-private partnership, as well as determines the selection mechanism for investment projects, the major requirements for investment projects, as well as their control and monitoring through implementation.

Cl. 181 of Stavropol Krai Law (of 01/10/2007; № 55-кз On Investment Activity in Stavropol Krai).

Decision by Government of Stavropol Krai (of 28/03/2014;
№ 114-п On Procedure for Developing and Employing Budget provisions of investment fund of Stavropol Krai).

Reasons and terms for holiday or installment on regional tax payment

Clause 64 of Tax Code of Russian Federation.

Provision of property from pledge fund as collateral for obligations

Ensuring the fulfillment of the obligations assumed by Stavropol Krai, as well as the obligations assumed by agents of innovation activity, small- and mid-scale businesses, agricultural producers and agents of investment activity performed as capital investment belonging to the priority investment areas in Stavropol Krai, and innovation projects aiming at socio-economic development of Stavropol Krai.

Stavropol Krai Law (of 06/02/2009; № 2-кз On Pledge Fund of Stavropol Krai).

Decision by Government of Stavropol Krai (of 19/08/2009; № 219-п On Certain Measures for Implementing Stavropol Krai Law On Pledge Fund of Stavropol Krai).

Privilege on tax for enterprises-residents of special economic zone of tourism-recreation type

Discounted income tax rate for companies-residents of the special economic zone of tourism-recreation type (hereinafter – special economic zone) that is to be directed to the Stavropol Krai budget, from activity performed in the special economic zone.

Exemption from property tax for companies-residents of special economic zone.

Cl. 14 of Stavropol Krai Law (of 01/10/2007; № 55-кз On Investment Activity in Stavropol Krai).

Stavropol Krai Law (of 26/11/2003; № 44-кз On Companies Property Tax).