Page 46

application of the reduced rate of the tax on the income of organizations21 .

6. The right not to bear the tax on the property of organizations arises with the following: organizations performing the kinds of economic activity specified in Item 2 Art. 11-51 of the Law of St. Petersburg «About tax privileges» and being the bearers of the tax to the property of organizations whose sum is paid into the budget of St. Petersburg, performing since 1 January, 2007 on the territory of St. Petersburg during any three subsequent calendar years acceptance to book keeping and introduction of objects of the basic means specified in Item 1 Art. 11-5-1 of the Law of St. Petersburg «About tax privileges».

The right not to bear the tax on the income of organizations arises with the tax bearer since the first day of the first month of the calendar year following the calendar year according to the results of which the total sum of investments in the objects of the basic means, evaluated according to Item 3 Art. 11-5-1 of the Law of St. Petersburg «About tax privileges» makes not less than 3 billion roubles.

7. Organizations – residents of the special economic zone located at the territory of St. Petersburg

The term for which the exemption can be given is five years from the date of registering the vehicle.

In case of alienation 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 sum of the tax on the income of organizations should be recounted basing on the rate of 0% 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 introduction. The tax bearer loses the right to use the reduced rate of the tax on the property 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 corresponding total sum of taxes and tax collections paid into the budget of St. Petersburg during the calendar year preceding the application of the privileges. 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 tax on the property of organizations (including advance payments) to be paid into the budget of St. Petersburg regarding the objects of the basic means specified in Item 1 Art. 11-5-1 of the Law of St. Petersburg “About tax privileges” are not considered22.

Transport tax Transport tax is exempted.

The exemption is not applied in relation to water boats and means of air transport.

Extension of Investment Tax Credit (Tax Deferral) to Provide Favorable Conditions for Creation or Modernization of Fixed Assets and Intangible Assets in St. Petersburg23 21 22

According to the Decision of St. Petersburg of 05.06.2007 No. 632 (A. 1, I. 4, P. 2). According to the Decision of St. Petersburg of 05.06.2007 No. 632 (A. 1, I. 1, P. 2).

23

The Law “On Investment Tax Credit” No. 316-28 on 12.07.2002 (as amended on 20.07.2006) and “Provision on Investment Tax Credit” No. 56-р on 6.08.2002. 46

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...

Advertisement