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2. Legal entities meeting the following requirements: 1) They pay corporate tax which is entered into the budget of St. Petersburg; 2) They made in any calendar year since January 1, 2005 investments (at least RUR 50,000,000) in fixed assets for production purposes (in their own production of goods, works, services in St. Petersburg for sale to third parties to receive profit); 3) At least 80% of taxable income is revenue from the sale of goods, works, services (in compliance with the Law of St. Petersburg No. 8111 of July 14, 1995 “On Tax Concessions” and the codes of the AllRussia Classifier of Products OK 005-93) of its own making connected with established types of activities.

17 18

The right to reduced corporate tax rate arises since the first day of the first month of the calendar year following the calendar year when investments into fixed assets calculated in appropriate way makes up at least RUR 50,000,000 for three tax periods.

The reduced rate of the tax on the income of organizations whose sum is paid into the budget of St. Petersburg is 13.5%. In case of alienation of the objects of the basic means and in case of their transfer to the branches and other separate departments which do not have the status of the legal person and are located outside the territory of St. Petersburg before the expiration of a three year term since occurrence of the right to the privilege, the tax bearer should make a recount basing on the rate of 17.5% during the whole period of using the privilege.

Investments are considered as purchase (except for purchase of the basic means under the leasing contract) and introduction of the basic means which have not been used on the territory of St. Petersburg before, construction (including in the economic way), reconstruction and modernization of the basic means, and also receiving as a contribution to the authorized capital of the basic means which have not been used on the territory of St. Petersburg before and their following introduction17 . Calculating the sum of investments in fixed assets, booked on balance of the tax bearer, including contribution in authorized capital (excepting fixed assets, received gratuitous and by means of leasing agreement) and implemented into exploitation on the territory of SaintPetersburg, are accounted due to primary value and according with data of accountability, and for modernized or reconstructed objects of fixed assets – due to added value in accordance with accountability data. The sum of investments mentioned in the pt.1 of the this Article should be reduced for residual value of the fixed asset used on the territory of Saint-Petersburg and booked on taxpayer’s balance and dropped out of use during the a.m. period. The object of fixed assets may take place in accounts only once. The tax bearer loses the right to use the reduced rate of the tax on the income of organizations since the first day of the first month of the calendar year following the calendar year when the total sum of taxes and tax collections (including advance payments) to be paid into the budget of St. Petersburg has made less then the total sum of taxes and tax collections (including advance payments) to be paid into the budget of St. Petersburg for a calendar year preceding the year of beginning of application of the reduced rate of the tax on the income of organizations. At calculation of the total sum of taxes and tax collections (including advance payments) to be paid into the budget of St. Petersburg for the calendar year preceding the year of beginning of application of the privilege the sums of the corporate tax of organizations (including advance payments) to be paid into the budget of St. Petersburg regarding the objects of the basic means specified in Item 2 Art. 11-5 of the Law of St. Petersburg “About tax privileges” are not considered18.

According to the Decision of St. Petersburg of 05.06.2007 No. 632 (A. 1, I. 2, P. 3). According to the Decision of St. Petersburg of 05.06.2007 No. 632 (A. 1, I. 3, P. 2). 43

Business.support.structure.in.St.Petersburg  

1. STATE AND MUNICIPAL AUTHORITIES IN ST. PETERSBURG In St. Petersburg the system of state authorities was formed which has statutory object...

Business.support.structure.in.St.Petersburg  

1. STATE AND MUNICIPAL AUTHORITIES IN ST. PETERSBURG In St. Petersburg the system of state authorities was formed which has statutory object...

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