Russian Ministry proposes to modify the arrangements for SPIC

| By | Ministry of Industry and Trade, SPIC
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The Ministry of Industry and Trade of the Russian Federation sent to the Ministry of Finance its proposals on “fine-tuning” the arrangements for Special-Purpose Investment Contracts (SPIC). This was announced by Vasily Osmakov, the Deputy Minister of Industry and Trade of Russia. The proposals include amendments to the tax laws in terms of benefits and to rules for concluding SPIC.

These arrangements were introduced in July 2015 by the Federal Law “On Industrial Policy.” The contracts can be concluded for up to ten years between an investor and the federal government or a subject of the Russian Federation. When signing a contract at the federal level, the investor confirms its obligations to invest at least 750 million rubles in the project, while the state guarantees stability of tax and regulatory conditions and provides incentives and support. Industrialists, including foreign companies, can obtain the status of Russian manufacturer, get access to public procurement and simplified procedure for subsidies.

The benefits also include a zero rate on profit tax, provided that 90% of the revenues come from the sale of goods manufactured under a SPIC.

“To remove this restriction, we propose to administer these tax benefits by analogy with separate accounting,” said Vasily Osmakov.

The Russian Ministry of Industry and Trade also supports the proposals of business community, including a “targeted” reduction of thresholds for capital investment in certain sectors and limited accounting of R&D costs in expenditures. At the same time, the Ministry proposes to extend the agreements between the investor and the authorities to intellectual property.