Validity period of the preferential tax rate on property tax of technopark organizations has been extended until January 1, 2024

On July 16, the deputies considered and adopted in the first reading the draft law “On Amendments to Article 5 of the Law of the Republic of Tatarstan “On Tax on the Property of Organizations” at a meeting of the State Council of the Republic of Tatarstan.

The bill is aimed at extending the preferential tax rate on the property tax of organizations in the amount of 0.5 percent until January 1, 2024 for technoparks (industrial parks), innovation and technological centers created in accordance with the decisions of the Government of the Russian Federation or the Republic of Tatarstan to implement innovative projects, regarding the provision of premises on preferential terms.

The property tax exemption enables the management companies of technoparks and industrial parks to provide their residents with premises and land plots at a preferential (reduced) rental rate and maintain a minimum cost of the services provided. The funds released as a result of the application of the tax incentive are also directed to the maintenance and development of the infrastructure of the sites, thereby ensuring their uninterrupted and efficient functioning, which is a key condition for the successful work of residents.

Full occupancy of sites by residents, most of which are small and medium-sized businesses, contributes to the preservation and growth of the number of jobs, as well as the volume of production of innovative goods and services.