LLC "Reinforced concrete products-1" applies for residency in Priority Social and Economic Development Area “Borovichi”

On September 8 a commission led by deputy chairman of the government of Novgorod region Evgeny Bogdanov was held to consider the application of LLC “Reinforced concrete products-1” for residency in priority social and economic development area “Borovichi”.

It is planned to start producing dry construction mixtures at the factory. The volume of investments into the project will be over 7,5 million USD. Over 60 working places will be created, 27 of them – during the 1st year after getting the status of the resident.

The experts, among whom are the representatives of the regional ministries of the investment policy, of finances, of industry and trade, of the administration of Borovishsky district and of Novgorod region development agency, approved the application of the potential resident.

The commission’s positive decision will let the regional government, the administration of the city of Borovichi and LLC “Reinforced concrete products-1” conclude a trilateral agreement. It’ll become the basis for assigning PSEDA resident status to the company by ministry of economic development of Russia. Now there are three residents in the PSEDA “Borovichi”: LLC “Vilina”, LLC “RadioChipMontazh” and LLC “Borovichi furniture frame factory”.

Being included into the register of residents, the investor while implementing investment project will be able to take advantage of tax preferences, develop new manufacturing sites, attract investments for diversification of the single-industry town’s economy and create new working places.

Recall that during the 1st five years of working in PSEDA the companies’ property will not be taxed, and during the second five years the corporate property tax will be 1,1%. The federal part of the profit tax rate is 3% until 2024 inclusive and 2% starting from 2025, but a PSEDA resident is exempt from paying it for five years after receiving the first profit. The regional profit tax is as follows: the standard rate is 17% until 2024 inclusive and 18%, starting from 2025, in a preferential mode it is 5% for the first five years and 10% for the next five years.⠀⠀