Forms of state support for investors

Financial measures

Tax exemptions

PROPERTY TAX

Relief from property tax assessed at 50%

For organizations, registered on the territory of the Chuvash Republic and attracting investments in the amount of more than 50 mln rubles, during the whole payback period of an investment project, but for no more than for five years from the date of relief;

Rate of property tax is 0,1 %

For organizations, attracting investments in the amount of more than 5 billion rubles and implementing investment projects on the territory of the Chuvash Republic, and in regard to the property, constructed (purchased) in framework of implementation of an investment project, during the whole payback period of an investment project, but no more than for five years from the date of relief;

Property tax relief

For organizations, producing agricultural products with the use of innovative technologies, provided that the share of products sales income is at least 70 percent of the total volume of products sold, and attracting investments since 2008 in the amount of at least 100 mln rubles.

INCOME TAX

14%

rate of corporate income tax

for organizations, registered on the territory of the Chuvash Republic, subject to investment in the amount of more than 50 mln rubles, till financial viability of an investment project,

but no more than for five years from the month, in which organization received investments
14%

rate of corporate income tax

for newly established organizations (including foreign and with foreign participation) engaged in the production of consumer goods and processing of agricultural products (at least 70% of the total volume),

within the first 3 years from the date of state registration, subject to the direction of the released funds for the development of production.

 

Law of the Chuvash Republic of June 23, 2001 No 38«On Tax Regulation»

Decree of the Cabinet of Ministers of the Chuvash Republic of January 13, 2005 No. 3 «On the Council for Investment Policy and Public Control over the Implementation of Major Socially Important Investment Projects that Received State Support for Investment Activities in the Chuvash Republic»

 

Subsidies

FOR INVESTORS

Reimbursement of part of the costs related to the acquisition of equipment  under the following conditions:

  • co-financing by the applicant of costs at the rate of not less than 50 percent of the costs incurred;
  • the acquired equipment must be produced not earlier than a year preceding the year of applying for state support;
  • use by the applicant of the equipment as it intended during the useful life established by the Decree of the Government of the Russian Federation for the relevant depreciation group of fixed assets;
  • implementation of the investment project at a cost of more than 100 mln rubles;
  • implementation of activities in the production of goods (works, services);
  • subsidy rate should not exceed 15 mln rubles per one applicant.

Decree of the Cabinet of Ministers of the Chuvash Republic of July 23, 2014 N 250 «On approval of subsidies from the republican budget resources»

SMALL AND MEDIUM-SIZED BUSINESS ENTERPRISES

Reimbursement of part of the costs related to the acquisition of equipment under the following conditions:

  • co-financing by the applicant of costs at the rate of not less than 50 percent of the costs incurred;
  • the acquired equipment must be produced not earlier than a year preceding the year of applying for state support;
  • use by the applicant of the equipment as it intended during the useful life established by the Decree of the Government of the Russian Federation for the relevant depreciation group of fixed assets, but no less than 3 years from the date of subsidy receipt;
  • implementation of activities in the production of goods (works, services);
  • subsidy rate should not exceed 15 mln rubles per one applicant.

Decree of the Cabinet of Ministers of the Chuvash Republic of July 23, 2014 N 250 «On approval of subsidies from the republican budget resources»

 

Industrial Development Fund

LOANS

Amount of a loan:
from 50 to 300 mln rubles

Term:
up to 5 years

Total allocated budget:
from 200 mln rubles

Co-financing:
from 50% of the total budget

Loan interest rate for the projects with the total allocated budget:

  • from 200 to 600 mln rubles – ¾ (three-fourths) of the Central Bank of the Russian Federation key rate, as in effect on the date of the signing of a loan agreement, but no less than 5 % per annum;
  • more than 600 mln rubles – 5% per annum

Procedure  for granting of loan for implementation of projects of industrial development

INFRASTRUCTURE FINANCING

to 100 mln rubles

In case of implementing investment projects with investment amount from 400 million to 1 billion rubles inclusive

to 200 mln rubles

n case of implementing investment projects with investment amount from 1 billion to 3 billion rubles inclusive

to 300 mln  rubles

In case of implementing investment projects with investment amount from 3 billion rubles and higher

 

Decree of the Cabinet of Ministers of July 12, 2017 «On the approval of procedure for the selection of investment projects»

 

Non-financial measures

Non-negotiable land properties

In order to implement large-scale investment projects, land properties are rented to investors without a bidding process being conducted if they meet the following criteria:

  1. Documentary evidence of financial support of a large-scale investment project implementation in the amount of not less than 50 percent of its value
  2. The cost of the investment project in the territories of rural and urban settlements, urban districts, except the city of Cheboksary, is more than 30.0 million rubles, in the city of Cheboksary - more than 50.0 million rubles
  3. Creation of at least 50 new jobs in the territories of rural and urban settlements, or at least 100 new jobs in the territories of urban districts (except the city of Cheboksary), or at least 150 new jobs in the city of Cheboksary
  4. The facilities, allocation of which will significantly increase the annual tax receipts levied on the territory of the municipality, but not less than 5.0 million rubles

The Law of the Chuvash Republic No. 32 &laquoOn the establishment of criteria for social facilities and amenities and large-scale investment projects for the placement (sale) of which it is allowed to provide a land plot which is publicly or municipally owned, and land plot, state ownership of which is not delimited, for rent without a bidding process being conducted»

 

Projects administration and promotion

  1. Acceleration of the examination of issues arising during the implementation of the investment project
  2. Help on the business infrastructure development
  3. Expertise and information support
  4. Prompt seeking of necessary approvals and decisions by the investor

Decree of the Cabinet of Ministers of the Chuvash Republic of January 13, 2005 No. 3 «On the Council for Investment Policy and Public Control over the Implementation of Major Socially Important Investment Projects that Received State Support for Investment Activities in the Chuvash Republic»