Tatarstan State Council adopts two laws in connection with granting Naberezhnye Chelny new status

On February 11, Tatarstan President Rustam Minnikhanov took part in a meeting of Tatarstan State Council, which adopted the regional law amendments to the law "On the property tax of organizations" and law "On establishing the tax rate on corporate income tax for for Residents of Advanced Social-Economic Development Territories (ADTs).

The law has been adopted in connection with granting  Naberezhnye Chelny a new status of  a territory of advancing social-economic development.

The corresponding decision of the Russian Government was signed by Prime Minister Dmitry Medvedev on January 28. At present, the issue of granting the same status for Zelenodolsk is considered.

ADTs residents take advantage of benefits for income and property tax, which rates are set by the regional laws.

Particularly, the income tax rate to the federal budget adds up to 0 percent for the first five tax periods from receipt of the first profit. Regarding the regional budget, the tax rate should not exceed five per cent over five tax periods from obtaining the first profit and may not be less than ten per cent over the next five tax periods.

Futhermore, ADTs residents are exempt from the land tax and apply reduced rates to insurance contributions.

"There is a queue of investors, who want to run business in these areas. I think, soon, we will receive first fruits," Head of the Budget, Tax and Finance Committee under Tatarstan State Council Leonid Yakunin said, commenting on the law.

Both laws have been totally adopted and will be forwarded to Tatarstan President for signing.