On July 11, 2012, a new regional law was adopted in Leningrad Oblast – the law “On the profit tax rate for companies performing investment activity in Leningrad Oblast” (hereinafter the “Law”).

The Law is aimed at creating favorable investment conditions in Leningrad Oblast for purposes of attracting additional investors and increasing investment activity in the region.

The main novelty of the Law is that a tax benefit is established for companies’ profits, where the tax is lowered from 18% to 13.5% if the company meets all of the following criteria:

• taxpayer is located in Leningrad Oblast;

• investments in the region are in the amount from 1 bln rubles;

• aparticular type of economic activity is conducted.

The Law does not establish additional requirements for addressing the tax authorities in order to receive the tax benefit, which makes it substantially more accessible for investors.

Regional law of Leningrad Oblast “On the profit tax rate for companies performing investment activity in Leningrad Oblast” dated July 11, 2012

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Pavel Karpunin, St. Petersburg Office of Capital Legal Services.

This Information letter keeps the clients of Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this information letter shall not be deemed as legal opinions and do not cancel the need to obtain legal advice or legal opinion on separate issues.