In September 2016, Togliatti received the status of the priority development area (hereinafter referred to as the PDA, PSEDA), which provides essential support and tax incentives for the implementation of large-scale investment projects. Creating of PSEDA in Togliatti is aimed at the formation of the most favorable conditions for doing business and diversify the economy.
Togliatti got the PDA status for 10 years with an option to extend it for 5 years. In accordance with the decision of the Russian Government, a special legal regime for entrepreneurial and other activity that involves tax exemptions, lowering of lease payments and insurance contributions rate for all residents of the PDA, was established in Togliatti.
The threshold of the minimum capital investment in the framework of investment projects may not be less than 83 400 euro in the first year (the total amount of investments is 333 400 euro).
of which there shall be not more than 25% foreigners.
Residents of PDA can become companies not associated with city-forming organizations and not involving the production of vehicles and equipment, excise goods, petroleum products, real estate trade and transactions.
The PSEDA resident status provides unique advantages for investors: the reduction of income tax (0% in part paid to the federal budget, and 5% in part paid to the regional budget in the first 5 years of operation), exemption from property taxes on the land, as well as the reduction of insurance premiums from 30% to 7.6%.