State Duma deputies proposed a law on tax deductions for venture investments

The tax amount can be reduced by the amount of investment

To give tax breaks to companies that engage in venture investments in Russian startups—this was the initiative put forward by deputies of the New People party. Party leader Alexei Nechaev, State Duma Deputy Speaker Vladislav Davankov and Chairman of the Committee on Small and Medium Enterprises Alexander Demin sent a corresponding bill to the government.

The bill was developed jointly with experts from the Internet Initiatives Development Fund. It provides that the amount of income tax paid by an investor can be reduced by an amount proportional to or even equal to the entire amount of the organization’s investments made.

The new edition contains a provision that allows regions to independently decide on the specific conditions under which an investor is entitled to a deduction, as well as the amount of investment expected to be deducted.

A tax deduction is provided if investments are directed to innovative projects. In this case, the agreement must be drawn up for at least five years, and information about it must be included in the regional register of investment partnerships.