Developers building roads in Moscow may get tax exemption

Moscow’s government is looking into the possibility of exempting developers from taxes on the funds they invest in building and repairing roads in the Russian capital. The current regulations require developers, which fund road construction, to make donations to the local road fund. The donations may not be included in construction costs and are subject to income tax of 20%. If the regulations are amended, the Moscow budget's one-time shortfall in income will be €60.65 million (RUB 2.87 billion) to €121.3
February 14, 2014 Read time: 2 mins
Moscow’s government is looking into the possibility of exempting developers from taxes on the funds they invest in building and repairing roads in the Russian capital.

The current regulations require developers, which fund road construction, to make donations to the local road fund. The donations may not be included in construction costs and are subject to income tax of 20%. If the regulations are amended, the Moscow budget's one-time shortfall in income will be €60.65 million (RUB 2.87 billion) to €121.31 million (RUB 5.74 billion) - 5-10% of the money donated by developers in 2013.

Moscow developers intend to invest around €919.32 million (RUB 43.5 billion) in the construction of roads. Morton Group will invest €314.12 million (RUB 15 billion) in construction of a road junction near its Solntsevo Park housing estate (€418,837 has already been donated to the local road fund). Crocus Group will invest some €293.18 million (RUB 14 billion) in construction of exit roads from Crocus Expo and Vegas shopping mall. Slavyansky Mir will spend €104.7 million (RUB 5 billion) on construction of street network near its namesake shopping mall. Yuzhnye Vorota will invest €94.23 million (RUB 4.5 billion) in repair of the nearby section of the Moscow Ring Road and MR Group will invest between €8.37 million (RUB 400 million) and €10.47 million (RUB 500 million) in construction of road infrastructure near its multifunctional complex on Golovinskoe road and office centre on Skladochnaya street.
Road Structures

Related Content

  • Moscow opening road contract tender
    September 2, 2015
    The authorities in Moscow will shortly open the tender process for the first section of the Solntsevo-Butovo-Vidnoye highway. The contract to build the road is worth some US$388.46 million. The work on the 7km section of the road will include the construction of eight lanes for traffic area, on and off ramps, pedestrian crossings and traffic lights, three overpasses and the installation of noise attenuation barriers.
    Read More
  • The boards of SNC and Atkins agree the US$2.7 billion acquisition
    April 28, 2017
    The acquisition of Atkins by SNC-Lavalin has been unanimously approved by the boards of both global infrastructure providers for around US$2.7 billion. During the first full financial year of the merger group around $90 million of cost synergies is expected to be saved. The deal is still subject to regulatory and Atkins shareholder approval, likely to be given in the third quarter of this year. Atkins, based in London, brings around 18,300 employees to the group and expands SNC-Lavalin's geographic reach be
    Read More
  • Funding for Ethiopia rural road development
    October 14, 2015
    The EU will provide funding worth US$613.37 million to the Ethiopian Government for rural road development. The financing will be provided between 2016 and 2020, as part of a road funding programme in place since 1997. Around 65% of Ethiopia’s local districts have road access at present. The country’s investment in road infrastructure has seen a halving of average journey times in Ethiopia. Meanwhile the road network had grown to nearly 100,000km at the end of 2014 compared to just 26,000km in 1997. The con
    Read More
  • Romania’s DEx12 Craiova-Pitesti on target
    November 17, 2021
    The DEx12, costing nearly €1 billion, will include 10 junctions and 75 bridges and passages.
    Read More

Highlighted Content