PIP Eligibility Criteria

PIP Eligibility Criteria

General requirements

  1. Registration as a taxpayer in Moscow
  2. No outstanding tax or duty liabilities
  3. No liquidation or bankruptcy procedures
  4. No outstanding payments under lease of Moscow municipal property
  5. Proof of sufficient financial resources to implement the project:
    • the cumulative net assets of the investor and other stakeholders (if any), together with the net assets of all business units of the investor or the stakeholders’ groups (if any), must constitute at least 10% of the investment volume stated in the PIP status application

      AND (or)
    • the applicant must have funds (own or raised) for at least 50% of the investment volume stated in the PIP status application.

    Additional requirements:

  6. For industrial park IIPs:
    • the industrial park and the management company are entered on the industrial park registry of the Ministry of Industry and Trade
  7. For industrial park or technopark IIPs:
    • potential residents have undertaken to establish industrial production and carry out target activities in the emerging industrial park / technopark under preliminary agreements

Asset requirements

Capital construction properties (CCPs) and land plots to be used in the investment project must have undergone cadastral registration.

Criterion Industrial production development PIPs Industrial complex PIPs Industrial park IIPs Technopark IIPs

Use of CCPs

Used for manufacturing facilities

At least 50% of the area to be used for manufacturing facilities

Used for manufacturing facilities, R&D, engineering tests, studies, analysis and certification, as well as information and telecom activities

Type of right for CCPs

Lease

Ownership

Ownership or other rights in rem

Built-up density

-

4,000 sq. m./ha, 2,000 sq. m./ha – on the New Moscow territory

8,000 sq. m./ha, 4000 sq. m./ha – in New Moscow

Total CCP area

-

At least 10,000 sq. m.

Share of commercial office, catering or consumer service facilities

20% or less

Approved use of land plots (LPs)

-

Production or design and construction. Additionally allowed: public use of CCPs, entrepreneurship, utility services, research support, business management, shops, catering and food services, and vehicle servicing

According to the actual function

Distance between LPs 500 m or less - 500 m or less

The above requirements must be met either on the application date or, for creation, purchase, modernisation or reconstruction of capital structures, within five years of the relevant status being granted; or, for Industrial production development PIPs, within three years of the relevant status being granted.

Economic requirements

All the economic requirements for industrial complex, technopark, industrial park or industrial production development PIPs must be met within two years of commissioning of the PP&E or acceptance of the ownership of the relevant intangible assets.

Criterion Industrial production development PIPs Industrial complex PIPs Industrial park IIPs Technopark IIPs

Type of business activity

Manufacturing

Manufacturing

Manufacturing and any activities within its process cycle: R&D, engineering tests, studies, analysis and certification

Research, information and telecom activities, engineering tests, analysis, certification, and manufacturing

Payroll,
from

RUB 28,905/sq. m.*

RUB 115.6 m/ha

RUB 115.6 m/ha

RUB 231.2 m/ha

Revenue, from

RUB 86,716/sq. m.*

RUB 346.9 m/ha

RUB 520.3 m/ha

RUB 693.7 m/ha

Average pay

Average monthly pay in Moscow for the last year 
(RUB 62,186 in 2017 prices)

Average monthly pay in Moscow for the last year 
(RUB 62,186 in 2017 prices)

Average monthly pay in Moscow for the last year 
+10% 
(RUB 68,405 in 2017 prices)

Average monthly pay in Moscow for the last year 
+20% 
(RUB 74,623 in 2017 prices)

Investment

At least RUB 0.3 bn**
- for three years

At least RUB 0.3 bn**
(but no less than RUB 0.25 bn per ha) - for five years

At least RUB 2 bn**
(but no less than RUB 0.25 bn per ha) - for five years

At least RUB 0.3 bn**
(but no less than RUB 0.25 bn per ha) - for five years

  • Economic requirements are considered for both owners and renters carrying out target activities.
  • The economic requirement data are presented as of 2017 and are subject to annual indexation.

* Per 1 square metre occupied by CCPs.
** Investments made in the year prior to the status application may be counted towards the overall amount.

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Documents to be submitted with the status application:

  1. Status application
  2. Copies of statement of changes in equity for each applicant AND (or) business unit of the applicants’ groups* (for the financial sufficiency check)**.
  3. Copies of documents confirming the powers of the applicants to file documents on behalf of other entities of their groups*.
  4. Documents confirming group affiliation of the applicants*.
  5. Copies of a loan agreement or a preliminary loan agreement AND (or) other documents confirming the amount of the planned investments.
  6. Information (excerpt) from the Unified State Taxpayer Register obtained within 30 calendar days of the status application date.
  7. An auditor’s report on the results of the agreed procedures with respect to the amount of investment previously made***.
  8. The investment project business plan.
  9. Copies of documents confirming the power of the authorised person(s) to sign the application and file documents on behalf of the applicants.
  10. From 1 January 2019, applicants need to sign a waiver of secrecy for certain items of their tax information.

    *If the applicants wish to count the relevant numbers towards their net assets.
    ** Note (paragraph 2): for the calendar year preceding the previous status application year – if the application is filed before 1 June; or for the calendar year preceding the status application year а the application is filed after 1 June.

    For Industrial park or technopark IIP status, the following additional documents are to be provided:

  11. For industrial park IIPs, documents confirming entry of data in the register of industrial parks and their management companies as per Government Regulation No. 794 “On Industrial Parks and Management Companies of Industrial Parks” dated 04.08.2015.
  12. A copy of the register of the technopark’s/industrial park’s potential residents.
  13. Copies of preliminary agreements between the technopark/industrial park’s management company and its potential residents envisaging the residents’ obligation to carry out target business activities on the CCPs created or purchased within the scope of the investment project.
  14. For Technopark IIPs only: consent to granting the status of a technopark and its management company (instead of PIP status) in cases when the investor and other persons involved (if any) perform the obligations under a special investment contract or an investment project agreement, within the timeframe specified by that contract or agreement. *

* The tax benefits will be retained and the technopark’s management company will also be eligible for benefits.

How to submit the documents

  1. Digital submission of the application and documents
    • Register on the Moscow Investment Portal.
    • After an account is created, you can fill out the application form and attach the documents.
    • Sign the application with the legal entity’s encrypted digital signature.
    • See the application form in the in the portal’s “Industry — Support Measures” section.

    The applicant may acquire an encrypted digital signature on the website www.uc-em.ru or at any other approved certification centre.

  2. Paper application

    The status application and attachments are to be submitted to the Department of Science, Industrial Policy and Entrepreneurship of Moscow as a single set of hard-copy documents, accompanied by digital copies of the said documents on an electronic medium. The set of paper documents must be continuously numbered, bound and certified with the signature of the chief executive of the applicant.

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