Rules* determining how the list of highly energy efficient objects and technologies (the “List”) can be updated came into force on 6 March 2021.
The List together with specific criteria to qualify assets and technologies as highly energy efficient were specified in Government Decree No. 600* dated 17 June 2015.
Russian taxpayers investing in assets and technologies included in the List may benefit from certain tax incentives (i.e. investment tax credits, accelerated depreciation and property tax exemption for newly accounted for assets).
Under the Rules, the procedure for including objects or technologies in the List consists of the following steps:
A taxpayer submits a signed application in free form to the Russian Ministry of Economic Development to request the inclusion of certain objects or technologies in the List.
In addition to its corporate or personal details, the taxpayer must state the title, functional purpose, technical details and area of use for the relevant objects or technologies.
The Ministry of Economic Development verifies the application (within 30 days of submission of this application).
The Ministry of Economic Development requests the competent Technical Committee to check that the relevant objects or technologies comply with the high-energy efficiency criteria.
The Technical Committee checks that the relevant objects or technologies comply with the high-energy efficiency criteria, issues a decision and sends it to the Ministry of Economic Development (within 30 days from the date of the Ministry of Economic Development’s request).
The Ministry of Economic Development decides whether to update the List and submit the relevant amendments to the government (within five days after receipt of the Technical Committee’s decision).
The government approves the update to the List.
The Rules also specify certain technical criteria for classifying objects and technologies as highly energy efficient. These criteria apply in addition to the specifications set out in Government Decree No. 600.
Objects and technologies that have been on the List for more than ten years will be excluded from the List unless the abovementioned compliance procedure for qualifying them as highly energy efficient is initiated in their respect after expiry of this ten-year period.
The Rules provide clear and transparent qualification criteria that should help taxpayers properly qualify their assets as highly energy efficient. This should enhance taxpayers’ access to tax benefits and allow businesses to influence the process of selecting objects and technologies of high-energy efficiency.
If you have any questions on this eAlert, do not hesitate to contact CMS Russia experts Dominique Tissot, Maria Kabanova, Anna Osmakova or your regular contact at CMS Russia.
* In Russian