EuroChem reduced its taxation
Members of the Legislative Assembly of the Leningrad region accepted amendments to the regional law, which provides for stimulating the implementation of projects in the industrial field. Its regulation relates to the sphere of industrial policy in terms of special investment contracts (SPIC).
The corresponding document was already adopted in 2017. However, since then the document has been greatly updated at the federal level.
According to the new version, the investor has to take duty to introduce or develop technology to master the serial production of industrial products in Russia, investing their own funds in the project. The maximum term of the SPIC has been extended to 20 years. The state, in turn, reduces the investor’s tax rate on the tax of organizations’ profit transferring to the regional budget up to 5%.
The financial and economic justification doesn’t name the losses expected for the regional treasury. Nevertheless, it was clarified that the shortfall in income will be formed evenly.
It was announced at the meeting that additional income in the budget is estimated at 17 billion rubles (approximately $231 million) until 2040, while benefits for the companies may amount to 24 billion rubles ($326.16 million) up to 2026.
The interested party that may sign the corresponding contract was disclosed. It’s the EuroChem company, which is implementing the EuroChem Northwest-2 project, which provides for the creation of a new ammonia and carbamide production facility.
So far, this is the only company that has applied to the authorities of the Leningrad region with an intention of concluding a SPIC. The previous version of SPIC was also designed for EuroChem.
“Of course, this law was developed for EuroChem, what is there to hide?” said the Speaker of the Legislative Assembly of the Leningrad region Sergey Bebenin.