Tatarstan took the initiative to extend tax incentives for residents of special economic zones at the Gaidar Forum 2020

The Republic of Tatarstan made a proposal to extend the preferential tax regime for residents of special economic zones of a technology-innovative type and to establish a rate for insurance premiums reduced to 14% for companies. The initiative was presented at a meeting of the Association of Innovative Regions of Russia, held on January 15 in Moscow as part of the Gaidar Forum 2020.

The general meeting of the Association of Innovative Regions of Russia was chaired by the President of the Republic of Tatarstan Rustam Minnikhanov, with participation of Deputy Chairman of the RF Government Vitaly Mutko, First Deputy Minister of RF Economic Development Mikhail Babich and Deputy Minister of RF Economic Development Sergei Galkin. Representatives of the Ministry of Economic Development of Russia noted the need to consider the initiative of the Republic of Tatarstan to provide businesses with lower rates for insurance premiums. Previously, it was also supported by all regions with technology-innovative SEZs - Moscow, St. Petersburg, Tomsk and Moscow regions.

“Preservation of benefits under insurance programs will allow investors to retain the attractiveness of special economic zones and may become an incentive for resident companies to create new products and technologies that meet the objectives of programs to develop national industries and stimulate the economy of the regions”, said Farid Abdulganiyev, Minister of Economy of the Republic of Tatarstan noted.

Let us recall that the preferential insurance regime for this category of residents was valid until the end of 2019. Moreover, until 2018, the general preferential rate was 14%, in 2018 - 21%, in 2019 - 28%.

Since the beginning of 2020, the provision of tax benefits for insurance premiums for companies engaged in technical and innovative activities in the SEZ was not provided. In this regard, the Republic of Tatarstan submitted to the federal level a proposal to consider the issue of prolonging preferential conditions for entrepreneurs and re-set the rate on insurance premiums at 14%. This support measure will allow companies to optimize costs: enterprises will be able to channel the funds released by cutting costs into research and development and attracting highly qualified personnel.