July 7,2006#67-OZ
VORONEZH OBLAST
LAW
ON STATE (REGIONAL) SUPPORT OF INVESTMENT ACTIVITY ON THE TERRITORY OF VORONEZH OBLAST
Adopted by the regional Duma
June 29, 2006
(in the wording of the laws of Voronezh Oblast
ofNovember 20, 2007 #123-OZ, ofApril 3, 2008 #21-ОЗ,
ofOctober 10, 2008 #79-OZ, ofNovember 14, 2008 #99-ОЗ,
ofDecember 29, 2009 #181-OZ, ofJune 2, 2010 #40-ОЗ,
ofJune 30, 2010 #62-OZ, ofApril 28, 2011 #57-ОЗ,
ofJune 23, 2011 #86-OZ, ofFebruary 24, 2012 #17-ОЗ,
ofJune 08, 2012 #78-OZ, ofOctober 17, 2012 #108-ОЗ,
ofDecember 27, 2012 #182-OZ)
This Law establishes Voronezh Oblast organizational, legal and economic basis of the state (regional) support investment in Voronezh Oblast, as well as forms and conditions of the support.
Chapter 1. GENERAL PROVISIONS
Article 1. Goals and objectives of the Law of Voronezh Oblast
Aims and objectives of this Law of Voronezh Oblast are as follows:
- to increase investment activity in Voronezh Oblast;
- to increase the tax base and to create new objects of taxation;
- to reduce the risk of investing in the economy of Voronezh Oblast.
Article 2. Principles of the state (regional) support for investment
The state (provincial) support for investment activity is based on the following principles:
- Economic fairness and reasonableness of decisions;
- Availability ofinformation necessary for implementation of investment projects to all investors;
- Equal terms for all investors;
- Mutual responsibilities of the public authorities of Voronezh Oblast and investors;
- Balance of public and private interests;
- Paragraph deleted. - Lawof Voronezh Oblast #21-OZ of April 3, 2008.
Article 3. Basic Concepts
For the purposes of this Law of Voronezh Oblast the basic concepts contained in the federal legislation are used, including:
1)The investment policy of Voronezh Oblast - a set of activities carried out by public authorities of Voronezh Oblast to create a favorable investment climate, and aimed at identification and implementation of the main directions of development of investment activity taking into account the socio-economic situation of the area and provide equal protection of the rights, interests and property of the investment activity, regardless of the form of ownership;(in the wording of Law#182-OZ of December 27, 2012)
2)Program of social and economic development of Voronezh Oblast - interrelated financial security, resources, performers and terms of a set of measures aimed at addressing the key social and economic problems of Voronezh Oblast, raising living standards and providing employment, development of production, labor and scientific potential of Voronezh Oblast;(in the wording of Law#57-OZ of Voronezh Oblast of April 28, 2011)
3)Agreement on investment activity, - the contract between the authorized executive body of Voronezh Oblast and the investor implementing an investment project of particular significance, which establishes their mutual rights and responsibilities in the implementation of the project by the investor in Voronezh Oblast, as well as specific conditions and parameters terms of investor measures of the state (regional) support of investment activities in accordance with applicable law; (in the wording of laws#123-OZ of November 20, 2007, #21-OZ of April 3, 2008).
3.1) Industrial Park is part of Voronezh Oblast designed to accommodate various production plants and operations set up by the implementation of investment projects and associated services furnished on a single project plan with the necessary infrastructure. The establishment and operation of an industrial park established by the Government of Voronezh Oblast;(Paragraph 3.1 adopted byLaw#99-OZ of Voronezh Oblast of November 11, 2008).
3.2) Modernization of existing plants - works due to changes in process or purpose of the equipment, buildings, structures or other objects depreciable fixed assets increased loads and (or) other new features; (Paragraph 3.2 adopted byLaw#99-OZ of Voronezh Oblast of November 14, 2008).
3.3) Reconstruction of existing facilities - rearrangement of the existing plant and equipment related to improvement and enhancement of its technical and economic indicators and carried out the project of reconstruction of fixed assets in order to increase production capacity, improve quality and product mix changes(Paragraph 3.3 adoptedLaw#99-OZ of Voronezh Oblast of November 14, 2008).
3.4) Expansion of existing facilities - building additional plants at the existing site (construction), as well as the construction of new and expansion of existing individual shops and facilities of the main, auxiliary and service facilities in existing enterprises or areas adjacent to them in order to create additional or new facilities and construction branches and industries within them that after commissioning shall not be onindependent balance; (Paragraph 3.4 adoptedby Law#99-OZ of Voronezh Oblast of November 14, 2008)
3.5) Modernization of existing facilities - a set of measures to improve the technical and economic level of individual industries, shops and sites based on the introduction of advanced equipment and technology, mechanization and automation of production, modernization and replacement of worn-out and obsolete equipment with new, more productive equipment, and to improve plant-wide management and support services; (Paragraph 3.5adoptedbyLaw#99-OZofVoronezhOblastofNovember 14, 2008)
3.6) Tourist and recreational complex - a set of objects of the tourist industry (hotels and other accommodation facilities, facilities of spa treatment and relaxation, food, educational, business, medical and health, physical culture and sports and other purposes), compactly located within one or more municipalities (in case of the location of objects of tourist and recreational complex on adjacent land);(Paragraph 3.6 adopted byLaw#57-OZ of Voronezh Oblast of April 28, 2011)
4) Particularly significant investment projects are investment projects which are implemented in Voronezh Oblast meeting to the following criteria:
a) volume of investment is no less than:
- 10 million rubles, provided that creation of new and (or) modernization, renovation, and expansion of the existing facilities in agriculture (crops, livestock) is performed;(in the wording ofLaws of Voronezh Oblast #99-OZof November 14, 2008, and #57-OZ of April 28, 2011)
- 10 million rubles, provided that creation of new and (or) the modernization, renovation, and expansion of the existing facilities in the municipal districts of Voronezh Oblast is performed, approved by the Government included in Voronezh Oblast list of municipalities with a low level of economic development, without any restriction by area;(paragraph adopted by Law#108-OZ of Voronezh Oblastof October 17, 2012)
- 50 million rubles, provided that creation of a new and (or) the modernization, renovation, and expansion of the existing facilities on the harvesting of timber during harvesting of dead and damaged plants, as well as on the harvesting of low-grade small merchantable timber and wood processing infrastructure is performed; (paragraph adopted by Law#86-OZ of Voronezh Oblast of June 23, 2011)
- 100 million rubles, provided that creation of a new and (or) the modernization, renovation, and expansion of the existing food plants is performed;(inthewordingofLaw #99-OZ ofVoronezh Oblast of November 14, 2008)
- 100 million rubles, provided that creation of a new and (or) the modernization, renovation, and expansion of the existing communication facilities designed to address the social problems of accessibility and quality of services in rural areas of Voronezh Oblast or affect the achievement of the control values indicators of development of the information society, the established strategy of development of the information society in the Russian Federation, is performed; (inthewordingofLaw #99-OZofVoronezhOblastofNovember 14, 2008)
- 200 million, provided that creation of a new and (or) the modernization, renovation, and expansion of the existing steel manufacturing, fabricated metal products, machinery, automobiles, mechanical, electrical and electronic equipment, aircraft and other vehicles is performed; (inthewordingofLaw #99-OZ ofVoronezh Oblast of November 14, 2008)
- 300 million rubles, provided that creation of a new and (or) the modernization, renovation, and expansion of the existing production plants of chemical and other non-metallic mineral products is performed; (inthewordingofLaw #99-OZ ofVoronezh Oblast of November 14, 2008)
- 300 million rubles, provided that creation of a new and (or) the modernization, renovation, and expansion of the existing housing and communal services is performed; (inthewordingofLaw #99-OZ ofVoronezh Oblast of November 14, 2008)
б) Regardless of the volume of investment on the following conditions:
- creation of new and (or) modernization, renovation, or expansion of the existing facilities for recycling of solid municipal and industrial waste;
(inthewordingofLaw #99-OZ ofVoronezh Oblast of November 14, 2008)
- new construction and (or) modernization, renovation, or expansion of the existing sports facilities for mass use, used for the development of Olympic sports;
(inthewordingofLaw #99-OZ ofVoronezh Oblast of November 14, 2008)
- construction of tourist and recreational facilities and development of their engineering infrastructure (networks, power, water and transport networks, water treatment plants, etc.);
(the Paragraph isadopted byLaw#57-OZ of Voronezh Oblast of April 28, 2011)
- creation of new and (or) the modernization, renovation, or expansion of production capacities for the development of forests in accordance with the Forest Plan of Voronezh Oblast, approved by the Decree of the Governor of Voronezh Oblast;
(the Paragraph isadopted by Law#86-OZ of Voronezh Oblast of June 23, 2011)
- creation of new industries to be placed in the industrial parks of Voronezh Oblast (the Paragraph isadopted by Law#17-OZ of Voronezh Oblast of February 24, 2012)
- creation of new and (or) modernization, renovation, or expansion of the existing facilities for use, recycling and disposal of organic waste. (the Paragraph isadopted by Law #17-OZ of Voronezh Oblast of February 24, 2012)
The decision to assign the investment project with the title of the special significance is taken by the Expert Council on implementation of socio-economic development of Voronezh Oblast subject to compliance with the investment project criteria of economic, social and fiscal performance, the approved Regulations of Voronezh Oblast on the advice of the executive authority of the Government of Voronezh Oblast;
(in the wording of Laws ofVoronezhOblast#57-OZofApril 28, 2011, and #17-OZ of February 24, 2012)
(Paragraph4 in the wording of Law#21-OZ of Voronezh Oblast of April 3, 2008)
в) repealed. - Law#17-OZ of Voronezh Oblast of February 24, 2012);
5) state (regional) warranty –securing the obligations of the subject of investment activity to credit institutions (third parties) provided by public authorities of Voronezh Oblast in accordance with the Federal Law and the laws of Voronezh Oblast.
Article 4. Legal regulation of the state (regional) support of investment activity
The legal regulation of the state (regional) support of investment activity in Voronezh Oblast is performed in accordance with the Federal Law, this law of Voronezh Oblast and other regulations of Voronezh Oblast.
Chapter 2. THE LEGAL AND ECONOMIC BASES OF THE STATE (REGIONAL) SUPPORT FOR INVESTMENT ACTIVITIES
Article 5. Investment policy of the Voronezh Oblast.
1. The investment policy is developed and executed by the public authorities of the Voronezh Oblast acting within the scope of their powers.
2. The investment policy comprises the following activities:
- setting the principal directions for the development of investment activities that are consistent with the social and economic situation in the Voronezh Oblast;
- ensuring equal protection of rights, interests and property of agents of investment activities regardless of the types of ownership;
(the paragraph was enacted by the Lawзаконом of the Voronezh Oblast of 27.12.2012 N 182-ОЗ)
- defining the sectors and the facilities of the Voronezh Oblast economy and its social sphere that are of high priority for the budget investments;
- defining the forms and methods of the State (Oblast) support for investment activities;
- establishing conditions for mobilization of investment credits and loans to investors for implementation of investment projects;
(version ofthe Lawзакона of the Voronezh Oblast of 03.04.2008 N 21-ОЗ)
- liasing with the Federal State authorities, with the public authorities of the constituent units of the Russian Federation, and with the local governments of the Voronezh Oblast municipalities in the matters related to execution of investment activities.
Article 6. Investor rights and duties.
1. The investor rights and duties in the territory of the Voronezh Oblast are governed by the Federal legislation and by the Voronezh Oblast legislation, as well as by an agreement on execution of investment activities.
2. Investors have equal rights for the State (Oblast) support that is stipulated by the legislation in force.
3. Investors applying for the State (Oblast) support have the following obligations:
1) they shall comply with the laws of the Russian Federation and of the Voronezh Oblast;
2) they shall pay taxes and other mandatory disbursements that are stipulated by the laws of the Russian Federation and of the Voronezh Oblast, and by the normative acts of the local municipality governments;
3) they shall prevent unfair competition practices from occurring and shall abide by the antimonopoly laws;
4) they shall maintain accounting and statistical records as set forth by the legislation in force and shall submit these following the established practices;
5) they shall ensure that their investment activities (direction, amount and types of investments) comply with the signed agreement on execution of investment activities;
6) they shall ensure that the funds allocated from the Oblast budget for the implementation of investment project are used as intended;
7) they shall comply with the requirements of the State standards, norms, rules and other regulations set forth by the Federal and the Oblast laws;
8) they shall adhere to the norms and requirements established for execution of investment activities, including the international norms and requirements;
9) when necessary, they shall possess licenses for specific types of activities, as set forth by the list of activities and by the license-granting procedure, which are established by effective legislation.
(part 3 was enacted by the Lawзаконом of the Voronezh Oblast of 03.04.2008 N 21-ОЗ)
Article 7. Register of the Voronezh Oblast investment projects.
(version ofthe Lawзакона of the Voronezh Oblast of 29.12.2009 N 181-ОЗ)
1. The Register of the Voronezh Oblast investment projects (Register) is set up and managed by an authorized executive body of the state power of the Voronezh Oblast with the purpose of maintaining a systematic database of investment projects, which are being implemented or are proposed for implementation in the territory of the Voronezh Oblast and which claim the State (Oblast) support measures.
Investment projects are entered into the Register by an authorized executive body of the state power of the Voronezh Oblast upon a decision made by an expert committee for implementation of the Voronezh Oblast social and economic development strategy.
(part 1, version ofthe Lawзакона of the Voronezh Oblast of 24.02.2012 N 17-ОЗ)
2. The procedure for setting up and managing of the Register is approved by an authorized executive body of the state power of the Voronezh oblast.
Article 7.1. State (Oblast) support for investment activities
(was enacted by the Lawзаконом of the Voronezh Oblast of 29.12.2009 N 181-ОЗ)
1. The State (Oblast) support measures are provided for the investment projects on the Register that have high priority ratings, provided these are incorporated in the Voronezh Oblast social and economic development program. The support is allocated within the amount of funds stipulated by the Voronezh Oblast Law on the Oblast budget for the current financial year and for the planning period.
(part 1, version ofthe Lawзакона of the Voronezh Oblast of 24.02.2012 N 17-ОЗ)
2. Investment projects are included into the Voronezh Oblast social and economic development program upon a decision made by the expert committee for implementation of the Voronezh Oblast social and economic development strategy, following the procedure established by the Voronezh Oblast Government.
(version ofthe Lawзакона of the Voronezh Oblast of 28.04.2011 N 57-ОЗ)
3. An investment project may be removed from the Voronezh Oblast social and economic development program upon a decision made by the expert committee for implementation of the Voronezh Oblast social and economic development strategy, following the procedure established by the Voronezh Oblast Government, in the following cases:
(version ofthe Lawзакона of the Voronezh Oblast of 28.04.2011 N 57-ОЗ)
- refusal of investor to pursue further implementation of the investment project;
- cessation of production operations by investor;
- bankruptcy of investor;
- investor’s failure to submit within 1 year the information about the status of implementation of the investment project to the authorized executive body of the Voronezh Oblast;
- changes to operational parameters of the investment project under implementation specified in the business plan, which will result in a reduction of output by over 50%; changes to the parameters of production facilities; reduction of workforce by over 50%; missing of construction or commissioning deadlines by over 50%; reduction of financing of the investment project by own investor’s means or by borrowed money by over 50%.
4. For the investment projects that were not assigned high priority ratings, the State (Oblast) support measures are provided under the framework of specific long-term Oblast programs and of specific departmental programs, as provided for by the normative legal acts of the authorized executive bodies of the Voronezh Oblast state power. These projects are not included in the Voronezh Oblast social and economic development program.
(version of the Law of the Voronezh Oblast of 28.04.2011 N 57-ОЗ, and of 24.02.2012 N 17-ОЗ)
Article 8. Appraisal of investment projects.
(version ofthe Lawзакона of the Voronezh Oblast of 28.04.2011 N 57-ОЗ)
In order to be grated the State (Oblast) support, investment projects undergo mandatory appraisal by the authorized executive bodies of the Voronezh Oblast state power, as provided for by the Federal laws.
Article 9. Forms of the State (Oblast) support for investment activities.
1. The State (Oblast) support for investment activities is provided in the following forms:
- per effective legislation, investors who carry out investment projects within the scope of the Voronezh Oblast social and economic development program, of the specific long-term Oblast programs and of the specific departmental programs are granted tax incentives for corporate assets tax, for profit tax in the amount payable to the Oblast budget, and are granted extension of tax due dates by means of delaying or deferring payments, or by means of investment tax credits;
(version ofthe Law закона of the Voronezh Oblast of 08.06.2012 N 78-ОЗ)
- investors are granted preferential terms of use for land and other natural resources, per Federal laws;
- the paragraph has become void. - The LawЗакон of the Voronezh Oblast of 03.04.2008 N 21-ОЗ;
- the paragraph has become void. - The LawЗакон of the Voronezh Oblast of 24.02.2012 N 17-ОЗ;
- information media support for the investment activities;
- participation in the development investment projects;
- participation in the funding of investment projects with the means of the Oblast budget, per effective laws;
- the State (Oblast) guaranties are extended to investment projects from the Oblast budget funds, and investor obligations are secured with collateral in the form of the Oblast assets, per effective laws;
(version ofthe Lawзакона of the Voronezh Oblast of 30.06.2010 N 62-ОЗ)
- investors are granted subsidies to cover a portion of the interest for the loans issued by the Russian credit organizations for implementation of investment projects executed within the scope of the Voronezh Oblast social and economic development program, of the specific long-term Oblast programs and of the specific departmental programs;