Governor of Khabarovsk Region proposed to limit tax benefits for harvesting enterprises

Interfax reports that a number of companies in the Khabarovsk Region will lose tax benefits from January 1, 2020. «We’ve defined a list of activities (production of goods, works, services) to which benefits for participants of regional investment projects cannot be applied. This list includes such highly profitable economic activities as coal and anthracite mining and enrichment, extraction of metal ores and other minerals, production of precious metals, as well as timber harvesting (only for organizations engaged only in timber harvesting, as for the enterprises performing value-added wood processing, the right to benefits will still be valid). This will concern relations with companies from January 1, 2020. The companies that will have obtained the status of a resident of the Territory of Advanced Social and Economic Development before 2020 will save the established benefits.»

It is specified that the law abolishes the income tax benefit (reduced rate) payable to the regional budget by taxpayers-participants of special investment contracts executed at the federal level.