The government approved the project of tax deduction for venture investments

The government supported the bill of the New People faction on tax breaks for companies involved in venture investments. The government’s response with comments to the document is available to RIA Novosti.

The New People deputies came up with an initiative to provide benefits for such companies on January 26. The authors of the bill were party leader Alexei Nechaev, State Duma Deputy Speaker Vladislav Davankov and State Duma deputy Alexander Demin. The document amends the Tax Code, suggesting that the amount of income tax paid by an investor can be reduced by an amount proportional to or equal to the entire amount of the organization’s investments. In this case, the agreement must be concluded with the innovative company for at least five years, and information about it must be included in the regional register of investment partnerships.

The New People Initiative will only include information on the register if a company has made a direct investment or intends to do so. The document with comments on the project states that the Tax Code does not regulate the formation of the register. According to the government’s letter, the implementation of the provisions of the bill will lead to shortfalls in consolidated budget revenues in the regions.

In March 2023, New People already sent a similar bill to the government. In January 2024, the faction press service noted, that the new version of the initiative has been supplemented with a provision that will allow regions to independently decide on the specific conditions under which an investor is entitled to a deduction. In addition, the initiative states that regions will be able to determine for themselves the amount of investment to be deducted.

How to get a tax deduction in 2024 – in material “Ъ”.