The Support for Manufacturers

Amendments to the current law "On the republican budget for 2017" were made by the decision of the deputy corps. One of the main postulates of the law-in-draft is the need to finance the activities of cities and regions of our republic. In this regard, transfer limits will be increased by 50 million rubles, which are allocated from the republican treasury to local budgets in order to timely pay wages to employees of the public sector. The budget parameters of the Unified State Social Insurance Fund will also be reviewed, the revenue part of which will increase by 3.5 million rubles due to the planned deductions of one of the major debtors.

Parliamentarians by a unanimous decision extended the law for this year, presuming non-payment of the so-called tax on damages, if the taxpayer received losses on the basis of business results in 2017.

The Supreme Council as part of the implementation of the anti-crisis program at the beginning of last year adopted a law "On additional measures aimed at stabilizing the PMR economy". Its norms came into force April 1, 2016. They provided for a 50 percent exemption on the payment of income tax for organizations for the chemical and shoe industry. Two conditions were set: reinvestment of the net profit they received in production and non-payment of dividends to employees. In the process of implementing the provisions of the law, the tax authorities raised questions about the existence of the right to apply tax preferences to organizations that received a loss at the end of the year. They considered that economic entities that had worked at a loss did not qualify for benefits, since they did not have net profits, which they had to invest in production again.

 According to the provisions of the Law "On additional measures aimed at stabilizing the PMR economy", net profit for 2015, 2016, 2017 is subject to reinvestment of 100%. In this situation, when the organization received a loss as a result of the reporting period, it was not envisaged. Now the law adopted by parliamentarians clarifies the corresponding norm. This made it possible to exclude the ambiguous understanding that has arisen regarding the application of tax preferences by shoe and chemical industry organizations.