We are proud to be living in St. Petersburg, a great city with great history and culture. But what about the business environment? There is good news here - St. Petersburg is not only the second largest city in Russia, but is the leader in terms of investment attractiveness among other Russian cities. In many respects, this is achieved thanks to the St. Petersburg government efforts.
Today, those investing into production assets in the region, benefit from a profit tax reduction, from 24 to 22 per cent for investments starting at RUR 150 million and up to RUR 300 million. For those, investing above 300 million the profit tax is reduced to 20 per cent. The values in Russian Rubles come out to about Euro 4.4 and Euro 8.7 million, respectively. Moreover, the property tax rate is cut by 50 percent. The taxation benefits are granted for the period of 3 years.
Apparently, these measures target medium-sized businesses entering the region. But the government has great plans for supporting large companies as well.
Natalia Sherbakova, a PricewaterhouseCoopers executive, shared her vision on the future of the St. Petersburg investment climate with the American Chamber of Commerce:
"A valuable benefit of the incentives for strategic investors is that they allow charter capital contributions to qualify as investments. This permits multinational companies to combine regional tax incentives with federal customs benefits for production assets imported as an in-kind contribution to the charter capital of Russian subsidiaries."
Read the full text along with other AmCham news and analytics
Keywords: FDI Russia, Taxation Benefits, Government Investors Support Program, St. Petersburg, Special Economic Zones
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