Advanced socio-economic development zone “Borovichi” is gaining new residents.

On march 22 Novgorod region investment policy minister Denis Nosachev held a board meeting during which the members reviewed the application submitted by JSC “BRP Group” to become a resident of ADZ (advanced development zone) “Borovichi”.
Upon attaining the residency status, the company is planning to implement the woodworking production investment project The investment capital would amount to 538 million rubles (VAT not included) and 120 workplaces will be created. The investor intends to have everything up and running by 2023. The investment site has already been chosen. It is located near the industrial park “Preobrazhenie”.
The board members including representatives of financial, trade and industry ministries of Borovichi region unanimously approved the application. This allows for a tripartite agreement to be signed by the administration, the government of the region and the investor. Afterwards JSC “BRP Group” will be granted the status of the ADZ (advanced development zone) resident by the ministry of economic development of Russia.
As a reminder, on march 10th the board approved ADZ (advanced development zone)  Borovichi” application of  three companies: LLC “ Borovichi machinery factory” , LLC “ Bioplant” and LLC “Chaika”.
ADZ (advanced development zone) residency provides an array of privileges. For the first five years the companies would not be required to pay property tax and for the next 5 years the rate would only be 1,1%.  The federal income tax rate is 3% until 2024 and 2% as of 2025, however ADZ residents are not subjects to paying it for five years since earning their first profit. The regional income tax standard rate is 17% until 2024 and 18% as of 2025, but residents are given incentives on that as well and would only pay 5% for the first five and 10% for the following 5 years.
We should add here that Advanced socio-economic development zone (ADZ) “Borovichi” functions within the framework of the regional project titled “Establishment and development of infrastructure for potential investors and entrepreneurs in Novgorod region in 2022” The project is intended to assist investment activity and support small and medium size businesses.