In order to promote import substitution and also ensure stable industrial development, the Moscow City Government has adopted new legislation and is drafting regulations to support investors who implement new projects in Moscow, in particular by granting them the status of a Priority Investment Project (PIP).
PIP status for new projects decreases the overall tax burden by 25%, including:
1. tax exemptions
- income tax reduction by 25% (13.5% instead of 18%)
- 100% property tax reduction (0% instead of 2.2%)
- 99% land tax reduction (0.7% of the tax charged)
2. tax exemptions on land leases: up to 99%
PIP status may be granted to:
- projects to build a new industrial park;
- projects to build a new industrial complex;
- new industrial manufacturing projects;
- new technopark projects;
The new projects (in particular, new industrial parks and new industrial manufacturing projects) are to be implemented through the conclusion of a special investment contract between the investor and the Moscow City Government.
The special investment contract provides the investor with guarantees / protection against non-commercial risks, an increased tax burden, and unfavorable changes in Moscow legislation regulating investments and industry support.
In order to be considered for support, the Applicant must submit:
- An application stating the support measures being applied for;
- The project’s business plan;
- Documents confirming that the Applicant’s financial status meets the requirements.
The Moscow City Government has allocated sites for new industrial manufacturing projects.
In addition, Moscow has built infrastructure to launch state-of-the-art industrial manufacturing projects and research and engineering centers based at technoparks and technopolises.
Download «New investment project support measures»