Future Resident of Borovichi PSEDA will Help with Expansion of Gas Supply Infrastructure in the Region

On the 9th of August Minister of Investment Policy of the Novgorod Region Denis Nosachev held a meeting of the committee for consideration of application for residence on the territory of Borovichi Priority Social and Economic Development Area filed by Peterpipe LLC. The company manufactures polyethylene pressure pipes and matching fittings for water and gas transportation.

The volume of capital investments in the project will amount to 87.3 million rubles (exclusive of VAT), of which 34.7 million rubles will be invested during the first year. The enterprise will hire 25 people. First consignments of pipes will be used for implementation of the Regional Gas Supply and Gas Infrastructure Expansion Program.

Experts, including representatives of the region’s Ministry of Investment Policy, Ministry of Finance, Ministry of Industry and Trade, Administration of Borovichsky District, Regional Directorate of the Federal Tax Service and Ministry of Natural Resources, Forestry and Environment have supported the prospective resident’s application.

The committee’s favorable decision will enable the regional Government, urban settlement Administration and Peterpipe LLC to conclude a trilateral agreement. It will serve as grounds for granting Peterpipe the status of PSEDA resident by the Russian Federation Ministry of Economic Development. So far Borovichi PSEDA has 9 residents.

Upon inclusion in the register of residents, a company implementing projects can enjoy tax benefits, develop new areas of activity and attract investments for diversification of the single-industry town’s economy.

During the first five years of operation property of the PSEDA resident companies will be non-taxable, and in the following five years the applicable tax rate will constitute 1.1%. The rate of the Federal portion of income tax during the first five years is equal to 0%. The rate of the regional portion of income tax is equal to 5% and 10% during the first and the following five years, respectively.

Borovichi PSEDA functions within the framework of the “Formation and Development of Modern Infrastructure in the Novgorod Region for Entities Involved in Investment and Business Activities in 2022” priority regional project. It is aimed at the increase of investment activity and support of small and medium business.