The IPPS mechanism stipulates for the stabilization of tax and other regulatory conditions for the implementation of investment projects for up to 20 years, as well as the possibility of reimbursement of infrastructure costs necessary for the implementation of investment projects at the expense of taxes paid and other mandatory payments from the project.
A regional investment project is an investment project whose purpose is the production of goods, the volume of capital investments in accordance with the investment declaration which should not be less than:
50 million RUB. (the investment period should not exceed 3 years from the date of enlisting in the register of participants of the regional investment project;
500 million RUB. (the investment period should not exceed 5 years from the date of enlisting in the register of participants of the regional investment project.
Obtaining the status of a regional investment project by an organization, which is implemented on the territory of Saint Petersburg according to By the Law of Saint Petersburg dated 18.12.2020 No. 601-131 "On Amendments to the Law of Saint Petersburg "On Tax Concessions", allows organizations to:
- apply a reduced rate of corporate income tax to be credited to the budget of Saint Petersburg, in the amount of 10%;
- reduce the amount of tax on the property of organizations.
The period of validity of the income tax concession:
- until the termination of the status of a regional investment project participant;
- until the amount of concessions, including income tax, reaches the amount of investments made, but no later than 31.12.2026 (cap. investments from 50 million RUB to 500 million RUB;
- and no later than 31.12.2028 (with cap. investments over 500 million RUB).
The termination date of concessions under the REGIONAL INVESTMENT PROJECT:
- 01.01.2027 (investment volume 50 - 500 million RUB);
- 01.01.2029 (investment volume over 500 million RUB).
Key features of IPPS
Stabilization clause
A list of legal acts has been defined that will not apply to the project implementing organization (PIO) if it worsens its situation.
Information support
In order to conclude an agreement on the protection and promotion of investments, the necessary documents must be submitted through the state information system "Investments"..
Compensation of losses
It is possible to recover losses from the TUO in case of violation of the terms of the IPPS.
Modification and termination of the IPPS
The number of grounds for making amendments in the IPPS is limited, as well as for terminating the IPPS on the initiative of the TUO.
Conclusion without competition
At the conclusion of the IPPS it is not required to hold a competition on the basis of a private project initiative.
Infrastructure co-financing
PIO may be provided with a measure of state support that provides for reimbursement of costs in accordance with budget legislation, including for the creation of infrastructure.
IPPS signing conditions
The subject of the agreement can only be a new investment project, namely a project in respect of which the PIO:
- received a construction permit;
- made a decision to approve the budget for capital investments (expenditures) after April 01, 2020 before obtaining a construction permit or no later than 180 calendar days from the date of obtaining a construction permit;
- submitted an application for the conclusion of the IPPS no later than one year after the decision on the approval of the budget for capital investments (expenses).
- The new investment project can be implemented in any sector of the economy, including the IT sector, except gambling, wholesale/retail trade, construction of administrative and business centers, shopping centers, residential buildings.
- A Russian legal entity, including a specially created project company, can act as a PIO.
- A PIO cannot be a state/municipal unitary enterprise/institution.
- Any Russian legal entities, including those united under a simple partnership agreement, as well as foreign investors can invest in a PIO in the form of a project company.