The Moscow regional government may reward investors who improve the quality of life on its territory, Vedomosti reported Wednesday.
The proposed amendment on preferential tax status, which could be approved by the end of March, stipulates three categories of investment.
The first group includes investments in education, medical, office space, industrial parks and hotels. The maximum possible tax break, for those investing more than 500 million rubles ($13.8 million) is a eight-year abatement on property tax and 4.5 percent reduction on income tax for seven years.
The second group includes investments in manufacturing, energy, communications, and transportation companies. Tax incentives for this group will vary depending on the size of investment, divided into tiers of 200 million rubles, 1 billion rubles and 3 billion rubles.
The third group gives tax incentives to all other investment projects but stipulates a minimum investment of 50 million rubles in small businesses.
Current Moscow region tax breaks target large investors, in an effort to raise revenue by 1 trillion rubles by 2018. Regional authorities expect the proposed amendment to attract more investment in public health, culture and utilities.
Businessmen have praised regional authorities for their efforts to establish good relations with investors. "If, in the course of a year, you invest 30 million rubles, then they will give you a special aide who will assist in coordinating your documents," said Alexander Krustalev, general director of NDV-Realty.