THE RUSSIAN GOVERNMENT HAS APPROVED THE PROCEDURE FOR THE FEDERAL INVESTMENT TAX DEDUCTION
The Chairman of the Russian Government, Mikhail Mishustin, announced during an operational meeting with deputy prime ministers that a decision has been made to launch and establish the procedure for applying the federal investment tax deduction. The mechanism will come into effect on January 1, 2025.
Businesses that invest in their own development will have the opportunity to recover 3% of such expenses, which can be used to reduce the corporate income tax payment by the same amount.
This tax benefit will be available to organizations operating in specific sectors, including:
- Manufacturing industry
- Mining
- Scientific research and development
- Electricity and gas supply to consumers
- Public catering services
- Hospitality industry
The government expects that this measure will help entrepreneurs reduce costs for acquiring and modernizing fixed assets, improve the efficiency of project implementation, and strengthen the position of domestic companies in both the domestic and international markets.