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Interactive | Articles | Tax privileges for manufactures located on the territory of the Russian Federation

Tax privileges for manufactures located on the territory of the Russian Federation

Why would a manufacture need tax privileges?

Even in the most difficult economic times, tax privileges help the industrial sector keep on track. Certainly, tax privileges for manufactures are the necessary supporting force. Any developed nation pays special attention to the issue of granting tax privileges to a manufacture. Apart from the fact that the provision of tax breaks supports already operating production enterprises, this gives motivation to invest in the industrial sector of the Russian Federation. For such a system as a manufacture, tax privileges are granted at the regional level; this also applies to objects that have the status of an industrial park.

What are the tax privileges for manufactures?

Tax privileges inherent in a particular manufacture are determined by the authorities of the region on which the facility operates. Tax breaks can be granted to a manufacture in a number of fields: income tax, VAT, insurance premiums, tax exemption for land tax, transport and property tax.

Tax privileges for manufacturing, which becomes a resident of an industrial park and a technology park, are also spreading in a larger amount. Possible tax breaks can include the following:

  • a lowered rate of income tax (up to 13.5%);
  • exemption from payment of property tax;
  • reduction of land tax payment, which is 0.7% of the size of the entire plot.


A manufacture and tax privileges: trends and innovations

If we are talking about tax privileges for manufactures, it is impossible not to mention once again the importance of these tax breaks, because thanks to this the industrial enterprise can increase its own profit. Special attention is paid to the tax privileges for investment in real manufacturing. For example, since 2017, the authorities of the capital have significantly expanded support for investors; in particular, tax breaks concern manufacturers of goods. Support will be provided to industrial facilities located in the specialized registry and those who have special contracts at the federal level.

For the first type of organization, a 10% reduction in the rate for paying income tax is assumed for ten years.

For the second type, a zero rate is assumed until 2025.

In addition, the income tax rate is nullified for both types of organizations.

Thus, a manufacture and tax privileges are closely connected with each other, and similar accepted benefits are aimed at increasing the competitiveness of the capital and attracting investments in the development and modernization of the industrial sector.

In addition, in 2016, President of the Russian Federation V.V. Putin signed the law On Amending Part One and Two of the Tax Code of the Russian Federation. The changes concern new manufactures throughout the country. Privileges are granted, in particular, for the reduction of income tax in the event that investments in an industrial facility for the period from 2013 are at least 50 million rubles for three years and at least 500 million rubles for five years.

Note that the authorities continue to work on the development of new tax privileges for manufactures; for the dynamic response to all innovations, it is necessary to regularly monitor the news on profile sites and in the media. The most effective for the work of the enterprise will be the availability of a competent tax specialist on the staff.