Special Economic Zones offer tax privileges in Russia

On 3 October 2017 the Russian Ministry of Finance published the draft “Main directions of the budgetary, tax and customs tariff policies for 2018 and for the planning period of 2019 and 2020”. The document states that it is necessary for Russia to reduce its dependency on the export of oil. Over the next several years this will have to be accomplished in difficult economic and international conditions. New investments in the country's economy will need to be attracted. 

One of the directions for the development of investment activity is to continue the implementation of the federal policy of granting tax benefits. In particular, it has been proposed that investing taxpayers be granted a right to reduce profit tax by the amount of costs connected with purchasing (creating) or modifying (reconstructing) PP&E (the so-called “investment tax deduction”).

To read more: Bloomberg BNA