16.06.09

The Moscow Region government has suggested increasing benefits to companies with intangible assets such as patents and trademarks. The government wants to offer a profit tax reduced by one percent for every 5.75 percent of a company’s profit that is reinvested in intangible assets and set it at the balance in the current reporting period. The maximum reduction would be set at four percent and would be open to companies investing 500 million rubles a year or more in the Moscow Region. The bill is currently under consideration. If approved, the law will come into effect on the day of its official publication and remain in effect until the end of 2011.

In addition, legislators in the Moscow Region are preparing  changes to grant other investment tax credits. With approval from regional authorities, the project will be available for any regional tax, but only if the company has modernized and purchased equipment for scientific research or environmental protection. Credit will be given to investment companies and organizations supplying the Moscow Region government with goods and services.

Translated by Alinga Consulting Group.

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