Private funding is part of the state policy

Nikolay Stepanov

partner

+7 495 783-74-50
n.stepanov@rospravo.ru

 

The bill #412571-5 "On Amending the Federal Law "On Science and State Science and Technology Policy” and the Tax Code of the Russian Federation with Regard to Clarifying the Legal Status of the Funds that Support Scientific, Technical and Innovative Activity" is a logical step of the state policy which is aimed at the innovative development of the country. Thanks to the law the term "innovation" will become as equal a category of the Law "On Science and State Science and Technology Policy" as the term "scientific activity".

Funding created in accordance with the new law may become a major sponsor of innovation in Russia. According to article 15.2 individuals and legal entities will have the right to set up private funds to support innovation.

As an incentive to investors and to relieve both the foundations and the recipients of funding from excessive taxation, the bill proposes to include the contributions of the investors in deductible costs, while the recipients will be able to exclude the funding from their taxable income. This rule will be added to Article 270, 251 of the Tax Code.

At the same time the draft law follows another tendency in state policy: the readiness to reduce tax revenue is combined with the willingness to ensure more efficient investment. Article 15.1 of the law #412571-5 lays down the rules of bidding for state funding which includes the examination of each application by an expert.

No less important are the means of monitoring the effectiveness of state funding of research, science, technology and innovation - the obligation to report on its activities and budget expenditure.

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