For the effective implementation of any investment project or business idea, it is important to correctly draw up a phased implementation plan, which raises a lot of questions. When to register a company - before or after compiling a business plan and assessing its effectiveness? How to attract the most suitable loan and when - before or after the initial investment in your business? How to get the maximum tax benefits and state support? When to become a resident of the priority development area (PDA) - before or after making purchases under the investment project? How to achieve the highest profitability of the project? The Fund for the Development of the Chukotka Autonomous Region will be able to help with the answers to all these important questions. At the first meeting during the negotiations, the Fund's employees identify the needs of the initiator of the investment project and help determine the optimal sequence of actions for its successful implementation.
For the year of the Fund’s work, the overall positive dynamics of the implementation of investment projects in the territory of the region by business entities of various sizes: large, medium and small businesses. On average, the amount of declared investments made by residents in the first 3-5 years of the investment project implementation is comparable to the amount of savings due to the received tax benefits for 10 years. Let us dwell on this point in more detail: for example, the estimated investments will amount to 1 million rubles in the first three years of business, the tax payments without benefits will amount to 2 million rubles in the next 10 years. In the event that an enterprise or an individual entrepreneur is given the status of a TOR resident, its deductions will be preferential and will not be equal to the standard 2 million rubles, but only 1 million rubles. At the same time, it should be noted that business invests in its own development and does not pay any commissions for registration of the resident.
Examples of implemented projects/h3>
The project for the extraction of coal in the amount of 6.5 billion rubles. With a payback period of 8 years – the profitability of the project subject to the application of the above benefits is 20.8%, and the budget efficiency (in other words, savings) due to tax preferences is about 52% of the standard tax deductions for the first 10 years of the project.
The project for the extraction of gold in the amount of 15.5 million rubles. With a payback period of 2.3 years – project profitability is 17.9%, and budgetary savings for the first 10 years are about 52%.
The project for the extraction and production of gold-silver alloy for the amount of 2.5 billion rubles. With a payback period of 5 years – project profitability of 24%, and budgetary savings in the application of preferences reaches 67% of all tax standard deductions.
The fish processing project for the amount of 0.5 million rubles. With a payback period of 2 months – the profitability of the project relative to the committed investments is more than 1000%, budget efficiency is 48%.
Structure of implemented projects
The first two projects, cited in this article as an example, have in themselves a nearly complete cycle of production up to the transport component, but only for the permissible activities carried out within the PDA.
The third project – with the spin-off of an accompanying type of activity – of transport services within the PDA, which leads to the emergence of the following opportunities:
- use of credit resources by SMEs with the support of the FRD at reduced rates;
- use by small and medium-sized businesses of guarantees from the SME Corporation or the Chukotka Development Fund as a low-cost RGOs that solve the traditional question of finding a liquid collateral for bank loans.
The tax privileges for the two zones have been adopted – PDA “Beringovsky” and the free port of Vladivostok (in the part of the city district of Pevek). Tax benefits are provided in terms of income tax, property tax, land tax, MET. It is possible to apply a lowering factor for the lease of land. The greatest benefit from preferences in the PDA “Beringovsky” regime is accounted for by subsoil users at the expense of mineral extraction tax exemption. In Vladivostok free port mode, there is an exception for using privileges for enterprises engaged in extraction of precious metal ores and sands (gold, silver and platinum group metals) – this type of activity is not supported by privileges. The contributions to budgetary and extra-budgetary funds have been reduced by more than three times from the amount of remuneration to the personnel of the enterprise due to benefits, which gives a big saving for projects in the sphere of production (large or small) or the sphere of rendering services with a significant share of hired personnel. Also, residents can take advantage of customs privileges, apply a simplified procedure for VAT refunds, they apply a shorter period of scheduled and unscheduled inspections, which is relevant for the activities of energy, education, IT-technologies, agriculture, food production, transport and logistics and other areas.
It is important to note active participation in supporting investments by commercial banks. Starting business in the implementation of an investment project can attract preferential financing at rates significantly below the generally accepted ones. For its part, the Fund is ready to assist in drawing up a guarantee for small business entities from the SME Development Corporation or to issue in the near future its own surety in return for a more expensive collateral in the preparation of the collateral.
We draw attention to the permissible types of activity – the exception is the production and sale of excisable goods, trade, gambling, construction for the purpose of selling real estate, etc. Other activities related to production, domestic or transport services are welcomed and supported by the legal regime of the territory of advanced development.
To date, the Fund has several projects in the preparation of business plans, including in the production of food, crop production, water treatment, provision of household services.
The work of the Fund in 2017 is represented by five directions.
- Attraction of residents in the POA “Beringovsky”;
- Attraction of residents to the Free Port of Vladivostok;
- Work as a regional guarantee organization for SME entities;
- Preparation of a feasibility study for obtaining state support by business entities;
- Making business ideas for investor search.
Appeal of a potential investor or a project initiator is possible through several communication channels – personally, in writing, through the Fund’s website www.fond87.ru or by phone 6-93-32. Appeals sent by investors through the structures of the Chukotka AO government are redirected to the Fund to consolidate information on the planned project, and further the Fund selects the optimal set of free services for a particular investor, accompanies it at the drafting stage and continues to accompany it at the implementation stage.