"Helping Hand":
Moscow Support
for Business

The coronavirus disaster has not come single.
The pandemic, which had covered almost all Russian regions, entailed serious economic consequences. What business support measures are being taken right now?
The first package of support measures was approved by the Moscow Government on March 24, 2020.
It included:

  • extending the terms of sales tax and advance payments for property and land tax;
  • deferring rent payments.

This kind of support is provided to the organizations engaged in culture, sports, public catering, tourism, exhibition, entertainment, educational, social and educational activities.
On March 31, the city authorities expanded existing measures by making available loans and subsidies for SMEs, which would reduce bankruptcy risks and make it possible to continue economic activity during the crisis. For instance, up to a quarter of the expenses to purchase imported equipment can be reimbursed to the companies operating in the fields of industry, science and IT, as well as the hotel business.
In addition to urgent measures, the city authorities are continuing to support existing efficient enterprises and new investment projects in the industry and high technology sectors. The city provides businesses with tax and non-tax benefits, financial support, and creates convenient sites for establishing local production.

Moscow already has a well-functioning system for obtaining special statuses that can reduce the tax burden and provide other preferences for businesses. Thus, the industrial complex, industrial park or industrial park statuses can reduce the tax burden by 17% to 25%.
Support measures apply to both existing enterprises and new investment projects. Such projects can be assigned the Investment Priority Project (IPP) status, which can reduce taxes by 25%.
The city authorities also offer preferential loans to businesses. Thus, the Moscow Fund for Industry and Entrepreneurship Support provides investment loans of up to 300 m RUB to businesses for a period of up to 5 years. Moreover, the interest rate will range from 2 to 5% per annum, which is much more favorable than the standard bank rate. Funds can be used, for example, to purchase new equipment, finance working capital or acquire software. Loans are offered to research and development enterprises, software developers, as well as small and medium-sized businesses participating in state orders.
What should enterprises do if their exports are affected by the current situation? You can learn more from the webinar series launched by the Mosprom Center. The participants will be informed about the difference between force majeure and impossibility of performance, risk minimization methods, and the export agreement execution in the epidemic conditions. Also, the online program users will discuss the effect the "coronavirus factor" had on global e-commerce.
E-mail: pressprom@mos.ru
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