Investment tax deduction law came into force in Bashkiria

In Bashkiria, the law "On the application of investment tax deduction for corporate profit tax in the territory of the Republic of Bashkortostan" came into force, the press service of the State Assembly of the region reports.

Enterprises and organizations now have the right to reduce the amount of tax to be credited to the republican budget by the established investment tax deduction.

"Enterprises can compensate for part of the costs of creating and renewing jobs, infrastructure, development of industry and agriculture," explained the Speaker of the Bashkir parliament Konstantin Tolkachev. "The amount of this deduction can be up to half of the investment costs of organizations. This measure is aimed at increasing the investment activity of companies in our republic. This is especially relevant amid the negative impact of the coronavirus pandemic on the economy. "

As emphasized by the State Assembly, a relatively extensive list of enterprises is entitled to the investment tax deduction.

The norm applies to almost all manufacturing industries, as well as to agriculture, forestry, hunting, fishing and fish farming, the activities of health resorts, hotels, international and intercity passenger and cargo transportation by rail.

Besides, the new support measure concerns organizations that are implementing priority investment projects in Bashkiria and participants in the Labor Productivity and Employment Support national project.

"Lost revenues of the republican budget for these purposes will amount to about 5 billion rubles a year. But we took such a step to support the economy, "said Konstantin Tolkachev.

The law applies to legal relations that arose from January 1, 2020, and will continue to operate until the end of 2027.