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DESCRIPTION

In order to develop import substitution, as well as to ensure the sustainable development of industrial production, the Moscow Government has adopted laws and developed a regulatory framework to support investors implementing new projects in Moscow, namely, by granting them the investment priority project (IPP) status.

THE IPP STATUS PROVIDES THE OPPORTUNITY TO REDUCE THE REGIONAL TAX BURDEN BY 25% THROUGH PROVIDING ESSENTIAL PROFIT, PROPERTY AND LAND TAX BENEFITS, AND LAND LEASE PAYMENTS.
THE IPP STATUS CAN BE ASSIGNED TO THE FOLLOWING INVESTMENT PROJECTS:
  • the creation, modernization and (or) development of industrial production *;
  • the creation of an industrial complex;
  • the creation of an industrial park;
  • the creation of a technopark;
  • the projects implemented under concession agreements and PPP agreements;
  • the projects to create education, culture and art facilities;
  • the projects to create social service facilities.

* IPP aimed at industrial production development

New projects are expected to be implemented through concluding an investment project implementation agreement between the investor and the Moscow Government setting out the investor's obligations in terms of project property and economic indicators.

FOR THE POSSIBILITY OF SUPPORT MEASURES TO BE CONSIDERED, THE APPLICANT SHALL SUBMIT:
  1. An application indicating the support measures.
  2. A business plan of the investment project.
  3. Documents to confirm financial viability and compliance.
  4. Copy of consent to disclosure of tax secrets.

PROJECT LIST

SUPPORT MEASURES

PROPERTY TAX
REDUCTION BY

100

%

Real estate tax exemption

Current rates:
2% of the cadastral value for retail and office facilities in 2023
2,2% of the book value for other facilities

PROFIT TAX PAID TO MOSCOW BUDGET
REDUCTION BY

21

%

Preferential rate is 13,5%

Current rate is 17%


LAND TAX
REDUCTION BY

99,3

%

0,7%
of the calculated tax amount is paid

Current rate is up to 1,5%
of cadastral value

LAND RENT
REDUCTION BY

99,3

%

The preferential rate is 0,01%
of the cadastral value

Current rate is up to 1,5%
of cadastral value


The status is assigned for a period of up to 10 years and is subject to mandatory annual confirmation

REQUIREMENTS

PROCEDURE

IPP REGISTER

Regulatory Legal Framework

Decision of the Moscow City Government No. 38-PP of February 11 2016 “On measures for implementing industrial and investment policies in the city of Moscow” (as amended by decisions of the Moscow City Government No. 288-PP of 24 May 2016, No. 518-PP of 22 August 2016)
Federal Law No. 488-FZ of 31 December 2014 (as amended on 13 July 2015) “On Industrial Policy in the Russian Federation”
Decision of the Government of the Russian Federation No. 708 of 16 July 2015 “On special investment contracts for individual industry sectors”
Law No. 55 of 07 October 2015 of the City of Moscow “On the industrial policy of the city of Moscow”
Law No. 54 of 07 October 2015 of the City of Moscow “On the investment policy of the city of Moscow and on government support for investors”
Law No. 52 of 07 October 2015 of the City of Moscow “On setting the profit tax rate for organisations engaged in investment activities, for managing companies of technoparks and industrial parks, for anchor residents of technoparks and industrial parks”
Law No. 64 of 05 November 2013 (as amended on 25 November 2015) “On corporate property tax”
Law No. 74 of 24 November 2004 of the City of Moscow “On land tax”
Decision of the Moscow City Government No. 273-PP of 25 April 2006 “On improving the procedure for setting ground rent rates in the city of Moscow”

CONTACTS

TO RECEIVE ASSISTANCE IN APPLICATION SUBMISSION AND OTHER ISSUES RELATED TO IPP STATUS ASSIGNMENT, PLEASE CONTACT:

Ksenia A. Chekryakova

Support of industrial complex status applicants


Moscow Department of Investment and Industrial Policy


123112, Moscow, 1 Krasnogvardeisky drive, 21/1, OKO Tower

Phone: +7 (495) 620-20-00, ext. 22-038
Email: ChekryakovaKA@mos.ru

Natalia A. Kulesh

Support of industrial complex status applicants


Moscow Department of Investment and Industrial Policy


123112, Moscow, 1 Krasnogvardeisky drive, 21/1, OKO Tower

Phone: +7 (495) 620-20-00, ext. 22-126
Email: KuleshNA@mos.ru

Andrey V. Shabalin

Dupport of industrial park, industrial park anchor resident status applicants


Technological Infrastructure Development, Department of Entrepreneurship and City Innovative Development


125009, Russia, Moscow, Romanov per. 4/2

Phone: +7 (495) 620-20-00, ext. 11413
Email: ShabalinAV@mos.ru

Marina V. Emelina

Moscow City Investment Agency
Government of Moscow


119019, Moscow, Novy Arbat street, 11/1

Phone: +7 (495) 691-09-43
Email: EmelinaMV@gaui.mos.ru