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The oblast government takes an active part in creating favorable investment climate as well as in increasing the investment attraction of the region. To attract investments the oblast Government consistently realizes the State Investment Policy of which the most important part is the creation of the normative-legal base securing a set of preferences for the investors. Another important point is the creation of favorable conditions for the investment activities in the Kirov
By now the investment legislative base has practically been formed in the Kirov oblast. The base has been tested in practice; as a result of this testing the current focus today lies with the perfection of the investment regulation mechanisms drawing on the experience of other regions of RF.
The investment normative-legal base is rather clear for the prospective investors and includes the three Kirov oblast laws: ¹ 399-ZO (¹ 399-ÇÎ) "Of investment regulations in the Kirov oblast" of December 28, 2005; ¹ 239-ZO (¹ 239-ÇÎ) "Of budget credits extension to juridical persons" of May 12, 2004; ¹ 209-ZO (¹ 209-ÇÎ) "Of organizations' assets taxing in the Kirov oblast" of November 27, 2003 (including the amendments introduced by the Kirov oblast laws ¹ 250-ZO (¹ 250-ÇÎ) of July 1, 2004; ¹ 274-ZO (¹ 274-ÇÎ) of November 25, 2004; ¹ 381-ZO (¹ 381-ÇÎ) of November 24, 2005 and à ¹ 402 of February 1, 2006), as well as a number of decrees and resolutions regulating various aspects of State support and investment activity.
The basic legal document of the normative base is Law ¹ 399-ZO (¹ 399-ÇÎ) "Of investment regulations in the Kirov oblast" of December 28, 2005 which forms the legal base of the investment activities in the Kirov oblast, secures the rights of private investors and the rights of the Government in the sphere of investment activities, allows to concentrate the region's investment resources on the priority guidelines of the social-economic development within the framework of establishing the Oblast investment program. Moreover, the Law regulates the Investments State-support system and simplifies the use of the normative base by an investor.
The Law presupposes the competition-based State support for private investors. This support underwent complete testing in
2003-2005 and proved to be viable for further practical implementation. The list of State-support forms has been expanded with a new form of support, and namely, the extension of grants to support promising business ideas e.g. highly-detailed
development of an investment project business-plan. There has been regulated the order of drawing the list of high-priority investment projects. The list will consist of two parts: the projects which are the winners of the contests for the State support and the investment projects needing investments.
The Oblast Law "Of introducing amendments into the Kirov oblast law "Of organizations' assets taxing in the Kirov oblast" presupposes the introduction of a new order of tax incentives for the attraction of investment resources to realize the investment projects on the oblast's territory. These projects are based on the use of the differentiated tax rates on the organizations' assets depending on the volume of investments in the form of capital investments. The Law gives opportunity to the use of a reduced differentiated tax rates including the tax exemption on the organizations' assets serving the realization of investment projects as well as the use of reduced tax rates for leasing organizations.
The measures suggested in the Law will facilitate the solution of the oblast's capital assets modernization problem also by stimulating the development of finance lease and the subsequent activation of the investment potential building-up process.
By the end of 2006 to further the Law à "Of investment regulations in the Kirov oblast" the Oblast Government plans to work out oblast purpose-oriented program "The advancement of investment attractiveness and the attraction of investments and new technologies into the economy of the Kirov oblast" for the years of 2007 - 2009.
Moreover, by Russian investment legislation there have been set preferences for out-of-Russia investors.
Goods, brought into the Russian Federation as an out-of-Russia founder's assessed contribution into the fixed capital of a company, are free from customs duty on the following conditions:
- the goods are not excisable;
- the goods are not a part of the basic production assets;
- the goods are brought within the time limits set by the constituent acts for the formation of the company's fixed capital.
The investments received from international investors for the purpose of financing the production capital investments are not included into the taxable assets at the calculation of the income tax on condition that these assets are used up within a single calendar year from the moment of receiving them.
Summing up it's worth mentioning that currently in the Kirov oblast there is going a new phase in the formation of the State Investment Policy as well as in the formation the investment activities normative base. The formation of a detailed normative base will make the oblast a more promising partner for the investors and it will ensure the conditions for secure and profitable capital investment.
Normative documents
- ¹ 39-FZ (¹ 39-ÔÇ) Federal Law of February 25, 1999 Of Investment Activities in the Form Capital Investments in the Russian Federation (The Federal Laws editions ¹ 22-FZ (¹ 22-ÔÇ) of January 2, 2000; ¹ 122-FZ (¹ 122-ÔÇ) of August 22, 2004; ¹ 19-FZ (¹ 19-ÔÇ) of February 2, 2006)
- Kirov oblast law ¹ 209-ZO (¹ 209-ÇÎ) "Of organizations' assets taxing in the Kirov oblast" of November 27, 2003 (including the amendments introduced by the Kirov oblast laws ¹ 250-ZO (¹ 250-ÇÎ) of July 1, 2004; ¹ 274-ZO (¹ 274-ÇÎ) of November 25, 2004; ¹ 381-ZO (¹ 381-ÇÎ) of November 24, 2005)
- ¹ 239-ZO (¹ 239-ÇÎ) "Of budget credits extension to juridical persons" of May 12, 2004
- ¹ 59/89 Decree of May 16, 2006 Of realization of the clauses of oblast law ¹ 209-ZO (¹ 209-ÇÎ) "Of organizations' assets taxing in the Kirov oblast" of November 27, 2003
- ¹ 59/90 Decree of May 16, 2006 Of ratifying clauses of extending grants for the realization of measures directed at the commercialization of the incentives in the field of developing investment and innovation potentials of the oblast
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