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Financial support

Investor’s memo on support measures in Nizhny Novgorod region


Investor’s memo on support measures in Nizhny Novgorod region (pdf, 1,22 Мb)

Tax reliefs

Tax reliefs are demanded and widely used all over the world mechanism of support of investment activity.

Tax reliefs in Nizhny Novgorod region are granted in terms of tax deductions received into consolidated regional budget.

Size of relief on the profit tax depends on specific weight of proceeds received from the implementation of a priority investment project of Nizhny Novgorod region to total proceeds from the implementation of the project as follows:

Specific weight of proceeds
from the implementation of project
Reduction of rate
of the profit tax
2–10% 1,0%
11–15% 1,5%
16–20% 2,0%
21–30% 2,25%
31–40% 2,5%
41–50% 3,0%
51–60% 3,25%
61–70% 3,5%
71–80% 4,0%
more 81% 4,5%

In case organization is entitled to reduction of the rate on the profit tax in accordance with the laws, total reduction of the rate on the profit tax to be credited to the budget of Nizhny Novgorod region may not exceed 4.5 percent.

Relief on the profit tax is granted according to the results of a tax period.

Investor may be relieved from the payment of tax on the property of organizations in terms credited to the budget of Nizhny Novgorod region in case property is created, acquired or used to implement a priority investment project.

Term of granted reliefs

Term of granted tax reliefs is restricted by the payback period of investment project and does not exceed 5 years from the date determined by an investment agreement, but not earlier than entry into force of the law of Nizhny Novgorod region on the approval of agreement.

In separate cases, at the implementation of an investment project of Nizhny Novgorod region in the field of industrial production or creation of transport or other infrastructure with the payback period exceeding 5 years, the Executive Meeting takes a decision to extend term of tax reliefs for such investor, but by no more than 2 years.

Relief from rent

Investors implementing investment projects in the territory of Nizhny Novgorod region may be relieved from the payment (during the term of investment agreement) of rent to land plots used for the purposes of carrying out investment activity in terms of payments to be credited to the budget of Nizhny Novgorod region.

Reimbursement of tax rate on loans

Investors implementing an investment project with the use of loan funds may be reimbursed for interest rate on the attracted loan.

Total amount of reliefs granted to investor may not exceed the amount of investments aimed at the implementation of a certain investment project.