THE GOVERNMENT OF THE RUSSIAN FEDERATION APPROVED A NEW PROCEDURE FOR CONCLUDING AN APPCI
The Government of the Russian Federation approved a new procedure for concluding agreements on the protection and promotion of capital investments (APPCI). The mechanism was assigned one of the key roles in restarting the investment cycle. It offers reimbursement of infrastructure costs and stabilization of business conditions.
The business has the opportunity to take into account borrowed funds in the total volume of capital investments. Tax monitoring will provide the Federal Tax Service with direct access to the accounting department of companies, eliminating desk audits. This should simplify the reimbursement of infrastructure construction costs.
The subjects of the Russian Federation were given the right to prepare opinions on investment projects, assessing their impact on the regional economy. In addition, the composition and terms of stabilization clauses were specified, which fix the level of taxes and guarantee the invariability of legislation for the investor. The stabilization period can be extended when the investor is unable to fulfill obligations for reasons beyond his control.