PROVISION OF TAX EXEMPTION
State support of the investment in the form of tax relief

денежное дерево.jpgTax relief is granted to those investors who implement officially approved investment projects in Smolensk region:

- on income tax of organizations in the amount of 4.5 percentage points in relation to the tax for the regional budget;

- on property tax of organizations as it pertains the property which is created (raised, reconstructed) and (or) purchases as a result of the approved project implementation in Smolensk region.

Selection of investment projects for the list of approved investment projects is carried out on a competitive basis.

How to qualify for tax relief?

1. All the information on current selection procedures for investment projects, participation terms, lists of required documents, application deadlines and selection dates is provided at the official website of Investment Portal of Smolensk Region (http://www.smolinvest.com) in the section "For Investors" - "Forms of State Support Provided for Investment Activity" - "Providing Tax Exemptions". Any additional information can be provided at the following phone numbers: .+7 (4812) 20-55-36, 20-55-34, 20-55-35, 20-55-40, 20-55-38
2. Department of Investment Development of Smolensk Region publishes an announcement about every selection procedure not later than 30 calendar days prior to the application deadline.
3. Tax relief is granted to investors who implement approved investment projects in Smolensk region:

- income tax relief of organizations in the amount of 4.5 percentage points in relation to the tax for the regional budget;

- property tax exemption as it pertains the property which is created (raised, reconstructed) and (or) purchases as a result of the approved project implementation in Smolensk region.
4.Terms of participation in the selection procedure:

- the investment project is aimed at new construction and (or) reconstruction and (or) retooling and modernizing to meet the investor’s own needs in order to manufacture goods;

- the minimum amount of capital investment in the project (without VAT) for the period from the beginning of the investment project implementation till the end of the overall period of the provision of state support for the investment activity amounts to:

50 million rubles – for small and medium enterprises;
100 million rubles – for legal entities which are not regarded as small and medium enterprises.

Selection criteria:

- accumulation of a positive budget effect from the investment project implementation;
- social significance of the investment project;
- payback period of the investment project does not exceed 7 years;
- positive value of the net discounted profit;
- maximum value of profitability index of state support.
5. To participate in the selection procedure an application form and a package of documents are to be submitted to the Department at the following address: Smolensk, Poltavskaya street, 8A office 604.
6. The Department checks the contents of the documentation package and makes a decision:

- either to grant access to participation in the selection procedure and to execute an economic expert examination of the investment project;
- or to grant access to execution of an economic expert examination of the investment project;
- or to ask the investor to provide all missing documents within 3 days;
- or to deny access to participation in the selection procedure (the investor is informed of the denial in writing with the detailed explanation of the reasons for it).
7. Execution of an economic expert examination of the investment project and analysis of the investor’s financial standing.
8. Meeting of the Committee for Investment Policy at Administration of Smolensk Region. Making a decision on including the investment project in the list of approved investment projects of Smolensk region.

The procedure of granting tax relief is specified and adopted by the following laws and regulations: