Company income tax allowance

Those investors are exempted from tax who implement a priority investment project and made capital investments in production facilities (fixed assets) used exclusively for the production of goods, execution of works, provision of services on the territory of the Republic of Bashkortostan for sale to third parties. Tax exemption applies to the assets that have been newly created and (or) acquired during the first 3 years of the project (during the first 5 years if the level of investments is more than 5000 million rubles), since the beginning of the year (taxable period) following the year in which the capital investments reached the level that gives the right to tax exemption:

from 0,1 to 1,5
million rubles inclusive – for 3 taxable periods**
from 1,5 to 5
million rubles inclusive – for 5 taxable periods**
more than 5000
million rubles – for 10 taxable periods**
The reduced tax rate is granted to the investor implementing a regional investment project till the taxable period when the when the difference between the tax amount at the rate of 20% and the tax amount at the rate of 10% would be equal to the level of capital investments. At the same time the level of investments cannot be less than:

  • 50 million rubles during 3 years from the date of entry in the register for entities implementing a regional investment project within the territories included in comprehensive programme of social and economic development of municipalities of the Republic of Bashkortostan;
  • 100 million rubles during 3 years from the date of entry in the register
  • 500 million rubles during 5 years from the date of entry in the register

* payable to the budget of the Republic of Bashkortostan.

** reduced Company Income Tax rates set by the legislation of the subjects of the Russian Federation prior to January 1, 2018 are applicable by taxpayers before the expiration date but no later than January 1, 2023. At the same time the reduced tax rates can be raised by the legislation of the subjects of the Russian Federation for taxable periods of 2019 - 2022 years (Federal Law of the Russian Federation No. 302-ФЗ dated August 03, 2018).