At the last meeting of the Committee for the Development of Entrepreneurship and Industry, the government presented a package of six legislations related to state support for investment activities. It was noted during the meeting that the legislation regulating this sphere is outdated. The corresponding law was adopted in the 90s. This, according to the developers, prevent the attraction of foreign investment in our republic. As it was noted by the First Deputy Minister of Economic Development Alevtina Slichenko, drafting of the legislation used the experience of countries that have made significant progress in the investment, for example, Kazakhstan.
It is offered to guarantee to the investor for the period of 10 years stable conditions of doing business, which operated at the time of the conclusion of the investment contract. Centralized form of work with investors will be introduced to facilitate investment activities. It is also proposed to introduce the institution of the authorized body on investments. It will function in single window mode.
In addition to protecting the interests of investors, the law-in-draft is aimed at providing government support in priority areas of investment. Preferences can be divided into three types: full-time grants, tax incentives, investment subsidies. According to the law-in-draft, the first support mechanism relates to the transfer by the state for temporary use of a piece of land or a building for the placement of production capacities.
Tax preferences assume the release of the investor from the payment of corporate income tax for 5 or 10 years. The term of tax breaks will depend on the size of investments invested in the economy of the republic. It is also proposed to free investors from payment of land tax. The calculation of the unified social tax will take place at a rate of 14%. Tax benefits are also provided for enterprises that have decided to modernize or expand production. It is proposed for them to reduce the obligation to pay income tax up to 15% of the investment.
In addition to the proposed preferences, the law-in-draft proposed a new concept for our legislative environment - an individual investment agreement. It will record tax benefits, guarantees for investors and a working investment program. The concluded agreement will guarantee the unchanging conditions for doing business.
The parliamentarians of the committee, who actively participated in drafting the law-in-draft, recommended the package of legislations for adoption in the first reading. Yury Cheban, Vice-President of the Union of Industrialists, Agrarians and Entrepreneurs, also supported the document, calling the law-in-draft "timely for the republic".