Investment tax deduction
Since 2019, investment entities in the Sakhalin Region have been given the opportunity to apply an investment tax deduction, which involves reducing the corporate income tax by the amount of expenses for the acquisition, manufacture, delivery and modernization of fixed assets. The amount of corporate income tax payable to the federal budget (at a rate of 3%) can be reduced by 10% of the investment expenses. The amount of corporate income tax payable to the regional budget (at a rate of 17%) can be reduced by 50% of the investment expenses. The application of the investment tax deduction is limited by a maximum amount, which is calculated as the difference between the amount of corporate income tax at the rate established by tax legislation (17%) and the amount of corporate income tax at a rate of 8.5%. At the same time, the unused portion of the investment tax deduction can be carried over to the next tax period. The application of the investment tax deduction is regulated by Article 286.1 of the Tax Code of the Russian Federation and Article 1.1 of the Law of the Sakhalin Region dated September 27, 2002 No. 362 "On Income Tax Benefits for Organizations".