Skolkovo expands its tax benefit program for researchers

Subsidiaries of the Russian companies doing scientific work and RandD at Skolkovo may get the same tax benefits as the official residents of the Skolkovo innovation hub outside Moscow

Subsidiaries of the Russian companies doing scientific work and R&D at Skolkovo may get the same tax benefits as the official residents of the Skolkovo innovation hub outside Moscow, Russian business daily Vedomosti reported, citing Vasily Belov, the acting senior vice president of the Skolkovo Foundation. According to Mr. Belov, such subsidiaries won?t have to pay their profit tax (until their revenue exceeds $30m) and property tax. They will also be allowed to pay reduced insurance for their staff (14% instead of today?s 30%). The Skolkovo Foundation?s primary goal is to give grants to its innovative residents and persuade the companies to set up research subsidiaries. It?s only a resident company that is currently eligible for tax benefits; but it takes time and effort to become one. A company has to prove the innovativeness of its project, which requires spending on rigorous testing by external experts. Subsidiaries, which have no residency status, can do whatever research they deem necessary; to receive the ?partner? status, all they need to do is sign an agreement with the Skolkovo Foundation...