The participants discussed improving the procedure for the calculation and payment of the value-added, profit and property taxes by the participants of PPP projects, the expediency of reducing taxes in low-margin industries, and the possibility of using foreign experience to provide tax incentives to private partners in Russia.
VEGAS LEX Projects Manager of Tax Practice Yury Ivanov drew the participants’ attention to the biggest legal loopholes in the taxation of concession partners, as well as these loopholes’ influence on the economic structure and budgetary efficiency of concession agreements.
Maxim Tkachenko, chief analyst at the PPP Committee of the Russian Chamber of Commerce and Industry, delivered a report on the obstacles that hinder the implementation of PPP projects in Russia. He focused on VAT on proceeds from the use of these projects’ services, the impossibility of applying accelerated depreciation methods to the objects of concession agreements, as well as procrastination with the adoption of decisions on VAT recovery.
Following the meeting, recommendations on amending the tax legislation were prepared for the concerned state agencies. Experts concluded that the mechanism of PPP projects is maladjusted and hence does not satisfy the requirements of the business community, and that the policy of further development of PPP projects has been ineffective.
The event was attended by representatives of federal executive authorities, the Russian Audit Chamber, audit and consulting companies, as well as investor companies that are implementing PPP projects.
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