The Ministry of Economic Development is working on the possibility to simplify the procedure for reimbursement of infrastructure costs in the framework of investment protection and promotion agreements (IPPA) by implementing a tax deduction mechanism in terms of taxes of the subjects of the Russian Federation, as well as direct federal taxes. This was announced by the First Deputy Minister of economic development of Russia Andrey Ivanov during an extended meeting of the Federal Council of the Russian Union of Industrialists and entrepreneurs (RUIE).

At the moment, on behalf of the First Deputy Prime Minister of Russia Andrey Belousov, appropriate changes to the Tax Code are being prepared. "Where the existing tax administration allows for a tax deduction, we will do this," Andrey Ivanov explained. At the same time, the subsidy mechanism will be retained for indirect taxes. The entire procedure for obtaining reimbursement for infrastructure costs is planned to be implemented on a "one-stop-shop" principle.

During the meeting, Andrey Ivanov also said that the bylaws that allow concluding IPPA have already passed all interdepartmental approvals.

By the end of 2020, it is planned to sign 20 IPPA, he stressed. "Now, without waiting for the launch of the state information system, we will conclude paper agreements in a pilot mode," Andrey Ivanov noted.