Mode of preference to the investors

  The mechanism of realization of the law RK "About investment activity in Republic Kareliya" is determined in the decision of government RK on June 26 2000г "About the statement definition both control of the settlement and actual periods repayment repayment of the investments at realization of the investment projects". The law provides granting a mode of investment preference to organizations in realization of the investment projects, which answer by the established law criteria and requirements (if the project concerns to priority directions of investment, provides increase of workplaces and gain of total deductions in the republican budget after ending action of tax privileges).
  The mode of investment preference is given by the conclusion of the agreement with the Ministry of economy RK. Within the framework of this mode of organization have the right to application of tax privileges stipulated by the republican tax laws. Now law RK "About the republican taxes (rate of the taxes) and taxes in territory of Republic Kareliya" from December 30, 1999 for the organizations - investors stipulates the following tax privileges:
  - The rate of the tax on profit of the enterprises and organizations enlisted in republican and the local budgets RK at a rate of 0 % for the period, equal to the actual period repayment of the investments, after end of this period, but not over two years is established; Are released from payment of the tax on property within the limits of the sums enlisted in the republican budget of Republic Kareliya on property, created or got for realization of the investment project and stipulated by them for the following periods: for the period actual repayment of the investments (not exceeding of the settlement period repayment, stipulated by the investment project, but not more than 5 years); for the period equal to the actual period repayment (not exceeding settlement period repayment, stipulated by the investment project, but not more than 2 years) after its end (the privilege works only in a part of the basic means).
  It is necessary to specify, that according to an item 29 of the law RK "About the republican taxes..." The tax privileges are given to the enterprises under condition of duly and payment in full by them of the current tax payments in the budgets RK and at absence at organization of increase of a shortage on payments in the budgets RK.
The law RK from February 22, 2000 "About the Budget of development of Republic Kareliya"
  In development of the specified law of June 26, 2000 the decision of Government RK "About the statement about management of the Budget of development RK and granting on a competitive basis of state support to the investment projects is accepted at the expense of means of the Budget of development RK". According to the given law on results of competitive selection of the investment projects granting state support or as direct investment is possible by granting credit resources under annual percents at a rate of not more than 1/4 rates refunding of Central bank, or by granting a state guarantee of Republic Kareliya under the credits, selected with banks, for realization of the investment projects.
  The documents for participation in competition on rendering of state support at the expense of means of the Budget of development RK are given in the Ministry of economy RK till July 1 of year previous to year of required support.
  It are not supposed to participation in competition of the organizations having delayed debts on earlier given from republican budget or from Fund, of earlier given from the republican to budgets, on a returnable basis; a shortage on tax payments in the budgets of all levels and state out of budget funds, and also unsatisfactory structure of balance. At inquiring of financing from the Budget of development RK the presence of other sources at a rate of not less than 50 % from total amount of investment expenses is necessary to confirm.
  Volume of the Budget of development RK and concrete list of the projects with the instruction of a kind and size of state support affirms at acceptance of the republican budget for the next financial year.
The investment tax credit
  The order of the Ministry of the finance RK from January 31, 2000 "About the Order of granting of the investment tax credit on payments in the republican budget RK" regulates granting to the investors of the investment tax credits, which are given on returnable, paid and supplied by a pledge or guarantee to a basis. The given credits have a special-purpose designation. The decision on granting the investment tax credit is accepted by the Ministry of the finance RK.
  The investment tax credit can be given under the tax to profit (the income) of organization and under the regional taxes in a part acting in the republican budget of Republic Kareliya, for the term of from one till five years. The percents for the sum of the credit can be established under the rate in the sizes from 1/2 up to 3/4 rates of refunding of the Central bank of Russian Federation.
Guarantee mortgage fund
  The decision of the chairman of government RK from December 17, 1997 "About the statement of a Rule about guarantee mortgage fund of Republic Kareliya" provides granting to the investors of state guarantees supplied with actives guarantee mortgage of fund of Republic Kareliya. In this case state guarantee is given by the conclusion of the contract about a pledge with the authorized body of state management on the basis of the decision of the chairman of government RK about granting a state guarantee. Guarantee mortgage the fund RK gives by itself set of objects of a state ownership (including property rights and other property) and should annually affirm by the decision of Legislative Assembly RK.