Minister announces bill to reimburse investor expenses in Far East

17 March 2017

Russian Deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District Yury Trutnev says the Ministry of Finance has fully approved the idea of providing tax deductions to investors who assume costs associated with the construction of infrastructure as part of implementing their projects in the Far East. The relevant bill may be drafted by the end of the first half of 2017 so that the measure can take effect in 2018, AmurPRESS regional information agency said citing the press service of the presidential envoy’s office.

“We have held discussions with the Ministry of Finance. They more or less agree. The preferences will be provided on federal taxes. As for the timeframe, I hope that we will wrap up this work in the first quarter or the second quarter at the latest”, Trutnev said, adding that this support measure should take effect in early 2018.

Trutnev said at the Russian Investment Forum in Sochi in late February that investors who are implementing projects in the Far East will be able to return their investments in infrastructure in the form of a tax deduction.

“I have already stated that the system should be self-adjusting and self-developing. One component in this regard – when development creates conditions to further attract investment – consists of laws that we plan to adopt in the near future granting the ability to receive a tax deduction based on the volume of investment in infrastructure. After all, it is difficult to avoid using the budget to raise all the money required to build infrastructure. The volume of investment is increasing and investors should be able to proceed from the assumption in a fully calm, practical and declarative manner that their job is to build a new enterprise, while the government will pay for infrastructure, but it will offer a tax deduction and not direct budget subsidies. We will submit this law to the government in the near future”, Trutnev said at the time.

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