The Government of the Moscow region and CJSC Gedeon Richter-Rus signed an agreement to upgrade and expand the pharmaceutical production facilities with the right to use the business income tax deductions and newly created property tax deduction until 2022.
“Time after time, the tax incentives prove their effectiveness as a tool for attracting investments. For example, this major foreign pharmaceutical manufacturer decided to expand and upgrade its own production facilities, and the investments to the project will amount to 1.2 billion rubles,” said Denis Butsaev, the Deputy Chairman of the Moscow Region Government – Minister of Investments and Innovations of the Moscow Region.
The implementation of the investment project will allow to purchase and commission the advanced manufacturing and laboratory equipment, deploy a radio frequency bar coding system, expand the industrial and logistical base, and equip the engineering networks with control and dispatching systems. In addition, this will create about 30 new high-tech jobs. According to the agreement, the profit tax rate will be reduced by 4.5%, and a progressive rate ranging from 0 to 1.5% will be applied to the property tax. The project will be implemented by the end of 2020, and the tax deduction will remain in effect two years more.