In Primorye, defense enterprises were exempted from property tax

Businesses can count on a 100% property tax exemption. The companies for which preferences are provided include those engaged in the extraction of metal ores, the production of medicines, as well as companies of the military-industrial complex included in the consolidated register of the Ministry of Industry and Trade of the Russian Federation and related to manufacturing industries.

Tax preferences for them will be valid from January 1, 2023 to December 31, 2025.

The government of the region came up with the initiative to provide benefits. They believe that they will help support backbone companies operating in single-industry towns, and representatives of the defense industry implementing investment projects to increase the share of civilian products. The decision should also help achieve the technological independence of the Russian Federation in the face of external sanctions pressure.

“The tax benefit will allow its recipients to release funds for further improvement and diversification of production. As a result, defense enterprises will be able to increase the production of civilian products, which means reducing dependence on the state defense order and increasing their sustainability. Support for mining companies, which provide employment for residents in remote settlements of the region and are city-forming enterprises,” deputy Galust Akhoyan explained.

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