The Ministry of Energy has decided to review the concept of the Federal Investment Tax (FINV) deduction: this mechanism makes it possible to balance the increase in corporate income tax from 20% to 25%.

The Energy Secretariat proposed three options for income tax deduction
  1. News


Subscribe to RB.RU on Telegram

The agency intends to offer it to a wide range of participants, regardless of the extent to which the purpose of their capital investments corresponds to the objectives of the state, Vedomosti reported, citing a draft government resolution.

Previously, the ministry believed that deductions should only be granted to participants in technological sovereignty projects. However, there are still restrictions for FINV. The updated draft states that only companies from a limited list of industries will be able to become applicants. The authorities have not yet approved their final list.

In the previous version, the Ministry of Energy had planned to set the deduction at 25% of the investment amount. The new proposed rate range is from 5.5 to 17%. The value must also be agreed upon; the volume of budget expenditures will depend on the choice.

Otherwise, the configuration of deductions has not undergone any significant changes. For example, a company will also be entitled to reduce income tax at the expense of the financial institution or to make deductions for depreciation of investments. It is not possible to combine both types of operations. The company has already drawn attention to the unfairness of this approach.

The Ministry of Energy proposed three branches of scenarios: by industry and scale of the financial institution.

  1. Only manufacturing industries will be able to claim the deduction. The amount of investments in this sector is expected to amount to 1.96 trillion rubles in 2025. The size of the financial investment fund in this case could be 15, 10 or 5% of the investment. The budget price of each type will be 300 billion, 200 billion and 100 billion rubles, respectively.
  2. Manufacturing industries (except for the production of coke and petroleum products), hotel and catering, research and development. The forecast for investments in these industries is 1.76 trillion rubles. In this option, Minek offers a different range of rates: 17, 11 and 5.5%. The cost of each of them for the budget coincides with the first scenario.
  3. Mining, manufacturing, air conditioning, hospitality, professional, scientific and technical activities. Investment forecast: 3.29 trillion rubles. Tariffs – 9, 6 and 3%. The budget price will not change compared to the first two options.

The Energy Secretariat proposes considering the second scenario as a base option. In addition to the sectoral restrictions, there are also restrictions on the depreciation groups to which the investments belong.

For example, it has been proposed to prohibit the use of deductions for equipment registered in groups 1 to 3. These include assets with a useful life of 1 to 5 years, such as automobiles.


Anastasia Marina

Source: RB

Previous articleTSMC Cuts 7nm Chip Production Prices by 10%
Next articleApple warns iPhone owners in 98 countries they may have been hacked
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.


Please enter your comment!
Please enter your name here