Regional investment policy
In order to attract investment into the economy of the region the Kirov Region Government consistently implements the state investment policy, the most important element of which is formation of the rules and regulations aimed at lowering of investment risks, increase of the investment potential of the region and creation of favorable conditions for investment activities in the region.
At present the basic document of the complex system of regulations is the Region Law dated 02.07.2010 № 537-ZO “On regulation of investment activities in the Kirov region”,
Within the framework of the Law such direct forms of participation of the regional Government in regulation of investment activities as public-private partnership, establishment of development institutions and park zones of intensive development are stipulated.
Mechanisms of public-private partnership form the basic construction for attraction of extra-budgetary investment into development of various kinds of infrastructure (systems of energy supply, heat supply, water supply and water discharge; housing utilities, processing of household waste, regional transport, public buildings and tourism infrastructure, as well as road construction and repair).
Participation of the Kirov region in projects of public-private partnership is determined in the Kirov Region Law dated 04.06.2010 № 529-ZO “On participation of the Kirov region in projects of public-private partnership”.
The general procedure of preparation and taking the decision of participation in a public-private partnership, requirements to the information to be included to the application and the documents that should be presented by the initiator for participation in the public-private partnership are contained in the regulation of the regional Government “On participation of the Kirov region in projects of public-private partnership”dated 25.06.2010 № 56/288.
There is a positive experience of application of the public-private partnership mechanisms in the Kirov region in respect of motor roads in the Kirov region. In 2012, it is planned to use mechanisms of public-private partnership in building objects of social field: schools and kindergartens.
One of the main approaches in removal of infrastructure limitations and administrative barriers is formation of park zones of intensive development with all the elements of transport, engineering and business infrastructure which allow to remove infrastructure limitations and to a great extent a whole range of administrative barriers associated with assignment of land plots, connecting with the infrastructure objects.
Procedure of creation and functioning of park zones in the Kirov region is determined by the Kirov region Government regulation dated 03.11.2010 № 76/539. In accordance with the regulation a multifunctional park, an industrial park, a recreation (tourist recreation) park, a logistic park, a technical park, an agroindustrial park can be established in the Kirov region.
In accordance with the Kirov Region Law dated 02.07.2010 No, 537-ZO state support can be provided to the three categories of private investors:
1. State support of the private investors implementing commercial investment projects conforming to the main directions of social and economic development of the Kirov region. This category of private investors shall be provided with the state support on a competitive basis irrespective of the volume of investment to the projects and place of implementation of the project in the territory of the region.
2. State support of the private investors – residents of park zones of intensive development. This category of private investors shall be provided with the state support under condition of implementation of the project in the area of a park zone irrespective of the volume of investment without any competitive selection.
3. State support of the private investors – holders of Kirov region Governor’s Support certificate.Private investors – holders of the Support certificate shall be provided with support irrespective of the place of implementation of the project in the territory of the region without any competitive selection.
Possible forms of state support of private investors in the course of implementation of investment projects are determined in article 14 of the Kirov Region Law dated 02.07.2010 № 537-ZO.
Procedure of provision of state support to private investors in the form of subsidies is determined in the Kirov region Government regulation dated 07.07.2011 № 110/269 “On implementation of certain provisions of the Kirov region Law dated 02.07.2010 № 537-ZO “On regulation of investment activities in the Kirov region”.
Private investors can be provided with the state support under condition of inclusion of investment projects to the list of the priority investment projects.
List of the priority investment projects is to be formed every year. The procedure of inclusion of projects into the list of priority projects shall be carried out in accordance with the regulation of the regional Government dated 21.03.2011 № 94/81 “On approval of the procedure of formation of the list of the priority investment projects, inclusion and removal of projects”.
By regulation of the regional Government dated 27.06.2012 No. 195 the list of priority investment projects of the Kirov region has been approved. The list includes 17 investment projects.
Kirov region Governor’s Support certificate is the mechanism of stimulation of the investment activities of private investors.
The procedure of granting of the Kirov region Governor’s Support certificate is determined by the Decree of the Kirov region Governor dated 16.02.2011 № 17 “On the Kirov region Governor’s Support certificate ”.
Support certificate can be granted to private investors implementing investment projects corresponding to the directions of the social and economic development of the region, with the value exceeding 1 billion rubles or 400 million rubles for the projects in the field of agricultural production and (or) food products.
Support certificate can also be granted to private investors implementing investment projects that have a significant meaning for social and economic development of municipal entities of the region.
The private investors who obtained Kirov region Governor’s Support certificate exercise the right for receipt of several forms of state support simultaneously, top priority passing of appropriate conciliation procedures at the executive bodies of the region and their projects shall be included to the list of the priority investment projects of the Kirov region.
The private investors – holders of the Support certificate and residents of park zones claiming for granting state support enter into investment agreement with the Government.
The procedure of conclusion of the investment agreement is determined in the regulation of the regional Government dated 21.03.2011 № 94/80 “On approval of the procedure of conclusion of investment agreement”.
Other regulations, governing the granting of state support to private investors:
Kirov region Law dated 28.11.2002 № 114-ZO “On transport tax in the Kirov region” stipulates application by private investors – holders of Support certificate of the beneficial rate of the transport tax equal to 50%.
Kirov region Law dated 04.05.2007 № 122-ZO “On other grounds and conditions of granting an investment tax credit”.
Other grounds except for those established by the tax code of the Russian Federation and this law are:
1) implementation of the investment project awarded with the Governor’s Support certificate in accordance with the procedure established by the Kirov region Governor;
2) implementation of the investment projects in production of food products, including drinks;
3) implementation of the investment project in development of local resource bases for production of the goods in the territory of the Kirov region.
A flat amount shall be established for the use of the investment tax credit at the rate of one second of the refinancing rate of the Central Bank of the Russian Federation, which makes the investment tax credit the most attractive source of financial resources for economic subjects in comparison with the bank loans where the fee for the use of the credit is much higher.
Kirov region Law dated 27.11.2003 № 209-ZO “On corporate property tax in the Kirov region”regulates the application by private investors of differentiated tax rates on the property tax depending on the volume of investment in the form of capital contributions within the framework of implementation of investment projects.
The regional Law on the property tax stipulates application by private investors of a differentiated tax rate on the property tax depending on the volume of investment in the form of capital contributions within the framework of investment project implementation. With the generally accepted property tax rate equal to 2.2%, taxation of private investors investing in the form of capital contributions for the amount from 20 to 50 million rubles shall be effected at the rate of 1.1%, from 50 to 100 million rubles – 0.5%, more than 100 million rubles – 0%.
It should be noted that property tax benefit are to be provided not on a competitive basis, but in accordance with the declarative principle.
In October 2011, the amendments to the above regional law on property tax were adopted that stipulated the opportunity of application of differentiated rates on the property tax by management companies and park zone residents.
Regulation of the Kirov region Government dated 24.02.2011 № 91/53 “On some measures for implementation of the Kirov region law “On pledge fund of the Kirov region”. It determines the mechanism of pledging of the Kirov region pledge fund objects for security of the fulfillment of the private investors obligations.
Regulation of the Kirov region Government dated 04.05.2008 № 130/149 “On approval of the Regulation of procedure of determination of the rent amount and procedure, conditions and terms of payment of rent for use of land plots, state property for which is not demarcated, and land plots in the property of the Kirov region”. It determines the amount of the beneficial rate of the rental fee in respect of the private investors – holders of the Kirov region Governor Support certificate.
Regulation of the Kirov region Government dated 25.02.009 № 4/20 “On procedure of consideration of documents for granting of state guarantees of the Kirov region”. It determines the mechanism of provision of state guarantees of the Kirov region for security of fulfillment of obligations of private investors.