Expenditure on the construction or purchase of expensive immovable property for the purpose of setting up production facilities may be included in the investment tax deduction (ITDI). This is the proposal made by the country's Ministry of Economic Development.
"Since 2022, at the decision of the region, FIT may include, including the cost of creation (purchase) of expensive real estate, namely, buildings and structures with a useful life of over 20 years. This means that the entrepreneur will be able to reduce the amount of income tax when buying, for example, warehouse space for the expansion of its business "- stated in the message of the ministry.
In addition, since 2022, regions will be able to establish terms for restoration of previously unpaid tax with the payment of penalties. The ministry specifies that at present this term is equal to the period of useful life of a fixed asset.
"If a tax deduction is applied to property with a long useful life, for example, 10 years or more, the application of the investment deduction becomes unprofitable for the entrepreneur. For businesses, this creates additional barriers to the renewal of fixed assets of the company" - explained there.
According to the authorities, adoption of the bill "will create a more flexible mechanism to support investments and encourage capital investment at the regional level.
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Author: Karina Kamalova