Laws


The foundations of state support for investment activities fixed by the Law of the Republic of Dagestan dated October 7, 2008 № 42 “On state support of investment activity on the territory of the Republic of Dagestan” developed in accordance with the Federal law on investment activities. The Law is aimed at increasing the investment attractiveness of the economy, creation of favorable and stable investment climate in the Republic of Dagestan and identifies the forms of state support of investment activities, rights of investors and obligations of subjects of investment activities.
State support of investment activity in the Republic in accordance with this Law shall be carried out in forms:

  1. Providing the investor implementing priority investment project:
    • tax breaks in the order established by the legislation of the Russian Federation and the Republic of Dagestan;
    • the investment tax credit in tax enlisted in the Republican budget of the Republic of Dagestan;
    • state guarantees in provision of return of borrowed funds attracted for the implementation of priority investment projects;
    • benefits when you rent real estate objects and land plots in state ownership of the Republic of Dagestan;
    • investments from state sources of funding;
  2. Finance the development and (or) expert examination of business plans, project documentation of investment projects, provision of land plots on which are implemented or planned to implement investment projects, the necessary engineering infrastructure;
  3. The provision of non-financial measures of state support of investment activities; formation of investment sites;
  4. Formation of investment platforms.

The law of the Republic of Dagestan of October 8, 2004 No. 22 “On tax on property of organizations” defines the list of organizations exempted from taxation, including organizations implementing investment projects deemed priority in the prescribed manner.

The law of the Republic of Dagestan from November 17, 2009 № 67 “on the investment tax credit in the Republic of Dagestan” defines the grounds and conditions of granting investment tax credit for the tax on profit of organizations at the tax rate fixed for the crediting of this tax to the Republican budget of the Republic of Dagestan and on regional taxes.

The act applies to organizations consisting on the account in tax bodies as taxpayers and carry out their economic activity on the territory of the Republic of Dagestan.

Investment tax credit may be granted to organizations under the tax legislation of the Russian Federation, as well as to organizations implementing investment project, received the status of priority investment project of the Republic of Dagestan.

The law of the Republic of Dagestan dated March 11, 2009 No. 9 “On state guarantees of the Republic of Dagestan”

The present Law in accordance with the Budget code of the Russian Federation determines the procedure for granting, registration and execution of state guarantees of the Republic of Dagestan.

State guarantee of debt obligations, by virtue of which the Republic of Dagestan (the guarantor) is required upon the occurrence under state guarantees events (warranty case) to pay the person in whose favor granted to the state guarantee (beneficiary), at his written request a specific obligation in the amount of money at the expense of means of the Republican budget of the Republic of Dagestan in accordance with the terms given by the guarantor obligations to be responsible for the execution of a third party (the principal) of its obligations to the beneficiary.


Decrees Of The President (Head) Of The Republic Of Dagestan


By the decree of the President of the Republic of Dagestan of February 18, 2009 No. 33 “About approval of provision on procedure and conditions of granting the investment project the status of priority investment project of the Republic of Dagestan” provides for the assignment of the investment project realized on the territory of the Republic of Dagestan the status of “priority investment project”.

Investors implementing priority investment project support is provided by the Law of the Republic of Dagestan “About the state support of investment activities”.

Tax incentives granted to investors who implement priority investment project for the payback period of the investment project but not exceeding five years from the beginning of financing of the given project.

Investors implementing priority investment project, the rate of tax on profits in the part transferred to the Republican budget of the Republic of Dagestan, reduced by 4 percent.

To be considered investment projects aimed at the implementation of capital investments on the territory of the Republic of Dagestan in the form of new construction, reconstruction, expansion, modernization and technical re-equipment of existing organizations, acquisition of buildings, constructions, equipment, vehicles and other objects (fixed assets).

The decree of the Head of Dagestan on February 27, 2014 No. 50 “About Council at the Head of the Republic of Dagestan on improving the investment climate” approved the regulations on the Council at the Head of the Republic of Dagestan and its composition.

The Council at the Head of the Republic of Dagestan on improving the investment climate is a consultative and Advisory body formed to develop proposals for the implementation of investment policies, promote investment activity in the Republic of Dagestan and improve the efficiency of interaction between state authorities of the Republic of Dagestan, territorial bodies of Federal Executive authorities in the Republic of Dagestan, local authorities of municipal formations of the Republic of Dagestan, investors and organizations involved in the investment process.

The main tasks of the Council are:

— preparation of proposals concerning the strategy and the investment policy in the Republic of Dagestan;
— to develop proposals for involvement in the Republic of Dagestan of the Russian and foreign investors, including through public-private partnerships;
— elaboration of recommendations on organization of interaction between bodies of state power of the Republic of Dagestan, territorial bodies of Federal Executive authorities in the Republic of Dagestan, local authorities and organizations in the sphere of investment activity;
— development of proposals on priority directions of investment development of the Republic of Dagestan and coordination of financial and investment resources;
— development of recommendations on reducing administrative barriers for investment and entrepreneurship (including in terms of shortening and simplifying the procedure of issuance of permits);
— analysis of the progress and results of implementation of the Investment strategy of the Republic of Dagestan until 2025, approved by decree of the Government of the Republic of Dagestan dated 24 December 2013 No. 704, preparation and consideration of proposals for its adjustment;
— development of common selection criteria of investment projects that receive state support at the expense of means of the Republican budget of the Republic of Dagestan;
— consideration of the annual report of the authorized body of Executive power of the Republic of Dagestan on the development and results of the procedure of regulatory impact assessment of normative legal acts of the Republic of Dagestan and drafts of normative legal acts of the Republic of Dagestan, involving investment activity;
— consideration of investment projects and issues related to the deployment of new and modernization of existing industrial facilities, industrial and social infrastructure, regardless of sources of funding and forms of ownership, including public-private partnerships;
— consideration of information on progress and results of implementation of investment projects, but also about the failed and unsuccessful investment projects, analysis of reasons of failures in their implementation;
— consideration of questions of granting of the state support of investment projects implemented on the territory of the Republic of Dagestan;
— development of recommendations on improvement of the state support of investment activity on the territory of the Republic of Dagestan;
— compilation and analysis of domestic and foreign experience in attracting investments;
— analysis of activities of Executive authorities of the Republic of Dagestan and local authorities to ensure elimination of the administrative barriers in the sphere of investment activity;
— consideration of draft regulatory legal acts of the Republic of Dagestan on investment, protect the rights and legitimate interests of investors, preparation of appropriate proposals.


Resolution of the Government of the Republic of Dagestan


The resolution of the Government of the Republic of Dagestan dated 26 June 2009, № 197 “On approval of the Procedure of estimation of social and budgetary efficiency of investment projects planned and implemented on the territory of the Republic of Dagestan” determines the method of estimation of efficiency of investment projects planned and implemented on the territory of the Republic in order to provide state support through full or partial financing at the expense of means of the Republican budget of the Republic of Dagestan.

The resolution of the Government of the Republic of Dagestan on June 26, 2009 No. 196 “On approval criteria that are the basis for the suspension (adjustments), the early termination of investment project implementation” determines the criteria that formed the basis for early termination provided state support for the implementation of investment projects, as well as the mechanism of such decision and applies to investment projects that receive state support in accordance with the Law of the Republic of Dagestan dated October 7, 2008 № 42 “On state support of investment activity on the territory of the Republic of Dagestan”.

The decision of Government RD from 04 September 2009 № 293 “On approval of the Procedure of conclusion of the investment agreement, the Procedure for keeping the register of investment agreements and the approximate form of the investment agreement” determines the procedure for concluding investment agreements with the investor implementing an investment project, recognized in the manner prescribed by law for the priority investment project of the Republic o Dagestan, the order of conducting the register of investment agreements and the approximate form of the investment agreement.

The resolution of the Government of the Republic of Dagestan of April 7, 2011 № 95 “On approval of the Regulations on investment sites of the Republic of Dagestan” defines the order of formation and terms of operation of investment sites of the Republic of Dagestan.

Investment platform — free land or land with located on it buildings and structures, with necessary engineering infrastructure and land use documentation available for the implementation of investment projects.

The resolution of the Government of the Republic of Dagestan dated 22 April 2011 № 122 “On measures of state support for investors, implementing investment projects in the Republic of Dagestan” defines the order of rendering the state support in the form of financing from the Republican budget of the Republic of Dagestan development costs of business plans and (or) project documentation of investment projects proposed for implementation in the priority sectors of economy of the Republic.


State support of investment activities is available in the following forms


1. The provision of subsidies for payment of part of interest for using the loans

The law of the Republic of Dagestan from 03 February 2005 № 8 “On state support of legal entities and individual entrepreneurs, implementing investment projects in the Republic of Dagestan with attracting monetary funds of credit institutions” defines the legal and economic measures to provide state support to legal entities and individual entrepreneurs, implementing investment projects in the Republic of Dagestan with attracting funds of credit institutions in the form of granting subsidies for payment of part of interest for using the credits.

The law also specifies the timing, size and criteria for the granting of subsidies. Subsidies to legal entities and individual entrepreneurs to pay percent for using the credits provided at the expense of means of the Republican budget of the Republic of Dagestan.

The amount of funds allocated for the provision of subsidies to legal entities and individual entrepreneurs to pay percent for using the credits, annually provided in the Republican budget of the Republic of Dagestan.

Subsidies to legal entities and individual entrepreneurs to pay interest for using the loans are offered on a competitive basis in accordance with the terms and procedure determined by the Government of the Republic of Dagestan.

The resolution of the Government of the Republic of Dagestan of February 15, 2005 No. 24 “About measures for implementation of the law of Republic Dagestan “About the state support of legal entities and individual entrepreneurs, implementing investment projects in the Republic of Dagestan with attracting monetary funds of credit institutions” approved by the Order of the grants and the Republican budget of Dagestan Republic for legal entities and individual entrepreneurs, implementing investment projects in the Republic of Dagestan with attracting monetary funds from credit organizations, to pay part of the interest for using credits.

Subsidies are provided to legal entities and individual entrepreneurs, implementing investment projects in the Republic of Dagestan with attracting monetary funds from credit organizations on a competitive basis, earmarked for the payment of part of interest for using the credits.

Subsidies to legal entities and individual entrepreneurs to pay part of the interest for loans granted for a period not exceeding 36 months.

Subsidies to legal entities and individual entrepreneurs to provide for payment of part of interest for using credits in the amount of 150 million rubles.

2. Support for leasing activities

The law of the Republic of Dagestan from November 1, 2005 № 41 “On state support of leasing activity in the Republic of Dagestan” defines the measures of state support of leasing activity in the Republic of Dagestan, reflected in the budget allocations for the implementation of leasing activities in the agricultural sector, giving tax benefits to leasing companies (firms) in order to create favourable economic conditions for their activities, provision of state guarantees for realization of leasing projects, the provision of subsidies to leasing companies on compensation of part of expenses for payment of percent on investment credits received in credit organizations for the conduct of leasing operations, as well as in the joint participation of state capital of Republic of Dagestan in creating the infrastructure leasing activities in separate targeted investment-leasing projects.

Share participation of state capital of Republic Dagestan is carried out in the presence of the lessor’s own or borrowed funds in the amount of not less than 70 per cent of the funds required for the implementation of investment-leasing of the project.

The procedure and conditions of share participation of state capital of Republic of Dagestan in leasing activity, as well as the procedure and conditions of granting at the expense of means of the Republican budget of Dagestan Republic of subsidies for reimbursement of part of expenses for payment of percent on investment credits received by the leasing companies to credit institutions for leasing operations, are established by the Government of the Republic of Dagestan in accordance with the legislation of the Russian Federation and the legislation of the Republic of Dagestan.

The lessors in accordance with the legislation of the Russian Federation on taxes and fees may be granted exemption on payment of regional taxes and fees payable to the Republican budget of the Republic of Dagestan.

The provision of state guarantees of the Republic of Dagestan in order to implement the leasing projects are carried out in accordance with the Law of the Republic of Dagestan dated March 11, 2009 № 9 “On state guarantees of the Republic of Dagestan”.

3. The provision of objects of the pledge Fund of the Republic of Dagestan

The law of the Republic of Dagestan from June 10, 2008 No. 27 “On the pledge Fund of the Republic of Dagestan” regulates relations in the sphere of formation and use of the pledge Fund of the Republic of Dagestan.

Pledge Fund of the Republic of Dagestan is created to enforce the obligations of the Republic of Dagestan, subjects to investment activities on the territory of the Republic of Dagestan, as well as creating favorable conditions for attracting investments into the economy of the Republic of Dagestan by means of joint participation in investment projects implemented on the territory of the Republic of Dagestan.

The list of objects of mortgaging Fund is annually approved by the Government of the Republic of Dagestan.

The resolution of the Government of the Republic of Dagestan of 28 April 2009 № 114 “About the statement of Regulations about the order of formation and use of the pledge Fund of the Republic of Dagestan” defines the principles and mechanism of formation, the terms and conditions of use of objects of mortgaging Fund of the Republic of Dagestan to ensure the fulfillment of obligations of the Republic of Dagestan, subjects to investment activities on the territory of the Republic of Dagestan, as well as creating favorable conditions for attracting investments into the economy of the Republic of Dagestan by means of joint participation in investment projects implemented on the territory of the Republic of Dagestan

Pre-emptive right of the collateral owned by the investment projects received in the established order the status of “Priority investment project of the Republic of Dagestan”.

The pledging of property included in the collateral Fund, to ensure the fulfilment of loan obligations the economic entities in order to implement investment projects on a competitive basis.
The contest procedure for granting a pledge of property included in the collateral Fund of the Republic of Dagestan, approved by the interdepartmental order of the Agency for investment and external economic relations of the Republic of Dagestan and the Ministry of property and land relations of the Republic of Dagestan dated August 24, 2010 No. 43-OD.

4. The formation of the investment land Fund of the Republic of Dagestan

The resolution of the Government of the Republic of Dagestan dated October 11, 2010, No. 368 “On the formation of the investment land Fund of the Republic of Dagestan” has approved the regulation on the procedure of formation of the investment land Fund of the Republic of Dagestan, formed a Council for the formation of the investment land Fund of the Republic of Dagestan and approved its composition.

The investment land Fund of the Republic of Dagestan is formed for the purpose of providing land plots for investment projects, as well as work on their formation under the stated goals.

Work on formation of land plots from the Fund under the investment projects financed by the national budget of the Republic of Dagestan.