The super-guarantees for investors

A package of six legislations related to state support for investment activities was presented by the Minister of Economic Development Sergei Obolonik at the plenary session. These legislative initiatives are aimed at regulating relations related to investments, including foreign ones, determine the legal, organizational and economic bases for implementing investment activities in our republic.

The first proposal is to create an authorized body for investments. It will function in single window mode. Guarantees for investors are prescribed: stable conditions (including those relating to legislation) of conducting business activity for a period of 10 years provided that investments in the economy of the country amount to not less than 500 thousand euros. In addition, a number of unprecedented preferences have been proposed for priority areas of investment. Among them - exemption from the payment of corporate income tax, the establishment of preferential rates of unified social tax (14%), benefits for payment for land and others. Tax benefits are also provided for enterprises that have decided to modernize or expand production. The term of tax benefits will depend on the size of investments invested in the economy of the republic.

In addition to the proposed preferences, the law-in-draft stipulates the concept of an "individual investment agreement". It will record tax benefits, guarantees for investors and working investment program. The concluded agreement will guarantee the unchanging conditions for doing business.

The parliamentarians recommended it for adoption in the first reading. The head of the profile parliamentary committee for the development of entrepreneurship and industry Viktor Guzun noted that there are no proposed favorable conditions for investors in neighboring countries. The legislator was supported by his colleagues.

Deputy Oleg Vasilaty called the adoption of legislations "a big step forward", but pointed to the need to finalize it. According to Sergei Obolonik, the government is ready to discuss any amendments to the legislations.