Bashkiria investors will have extended period of corporate property tax benefits

Now those who did not meet the deadlines for the project due to the pandemic will be able to take advantage of the benefit.

In Bashkiria, a law has come into force extending to 7-10 years the term of the corporate property tax.

“Coronavirus restrictions and significant sanctions pressure on businesses has led to delays in the delivery of equipment and the execution of work as part of the priority investment projects. In several cases, falling behind schedule has deprived investors of the opportunity to take advantage of corporate property tax benefits. This tax was exempt from property that was acquired or created within 3 years - with capital investments of up to 5 billion rubles and within 5 years - with investments of more than 5 billion rubles. We extended this period to 7 and 10 years, respectively. This measure will contribute to the successful implementation of investment projects and maintaining the investment attractiveness of the republic,” Konstantin Tolkachev, Chairman of the State Assembly – Kurultay of Bashkiria commented.

 “We have adopted a whole package of anti-crisis laws aimed at supporting economic activity in the republic. The tax burden on businesses has been reduced. In the short term, this will lead to a reduction in budget revenues, but in the long term, the economy will benefit. The practice has shown that for priority investment projects that have been implemented in our country since 2011, up to 8 rubles of tax revenues fall on 1 ruble of state support for the entire period,” Konstantin Tolkachev stressed.