Special investment contracts (SIC, SPIC)
SPIC 2.0 is a contract concluded with respect to an investment project to implement or develop and implement a technology included in the list approved by the Government of the Russian Federation** for the purpose of developing mass production of globally competitive industrial products based on this technology.
Under SPIC 2.0, an investor, who manufactures products using modern technologies in the Russian Federation, may seek to have significant tax benefits (on profits tax, on regional/local taxes) and other government incentives (including conditions precedent on localization of industrial production, special terms of leasing land plots, infrastructure support).
This section reviews regulatory and legal framework for SPIC 2.0 mechanism launch, the procedure for the conclusion, amendment and termination of SPIC 2.0.
Having extensive experience in successful supporting of projects to obtain government support measures and to conclude special investment contracts, KPMG is willing to provide comprehensive tax and legal support at all stages of entering into SPIC 2.0 and after the conclusion of SPIC 2.0, including:
- support in the course of the procedure for updating the list of modern technologies to make sure that the producer’s technology is included into it;
- support with preparing a set of documents that are necessary to participate in a tender for entering into the SPIC 2.0;
- advising on disputable issues related to state support measures under SPIC 2.0;
- support during negotiations with state authorities, as well as during tender (including at the stage of tender application assessment, at the stage of entering into SPIC 2.0);
- support with developing and implementing the methodology for separate accounting of SPIC 2.0;
- support with preparing reporting on the performance by investors of their obligations under SPIC 2.0;
- advising on various issues related to state support measures under SPIC 2.0.
* RF Government Decree No.1048 of 16 July 2020 “On the Procedure for the conclusion, amendment and termination of special investment contracts”, Federal Law No. 488-FZ of 31 December 2014 “On Industrial Policy in the Russian Federation”
** Resolution of the Government of the Russian Federation No. 3143-r of 28 November 2020 “On the list of technologies recognized as modern technologies for the purposes of entering into special investment contracts”