G/SCM/Q2/RUS/4  
 
27 September 2013  
(13-5191)  Page: 1/2  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
REPLIES TO QUESTIONS POSED BY CANADA1 REGARDING THE NEW 
AND FULL NOTIFICATION OF THE RUSSIAN FEDERATION2 
The following communication, dated 25 September 2013, is being circulated at the request of the 
Delegation of the Russian Federation.  
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  NOTIFIED PROGRAMMES 
 
Page 14, Irkustk region, Suppo rt of local manufacturing: 
 
Could Russia please provide more information on the eligibility requirements and the tax 
incentives offered?   
Reply 
 
In accordance with provisions of the law of the Irkutsk region of 8.10.07 No. 75-RL "On Property Tax for organizations" tax incentives are provided on the property tax of organizations depending 
on the type of its economic acti vity and applied on the obtained and (or) newly created property 
(which previously was not subject to taxation on th e territory of the region). Tax rate is fixed at 
0.55 – 1.1% depending on the value of fixed assets, approved for accounting report. 
 
In accordance with the law of the Irkutsk region of 12.07.10 No. 60-OZ "On reduction of rate of the corporate income tax for certain categories of  taxpayers" tax incentives are provided on the 
corporate income tax of organizations depending on the type of their economic activity and 
determined on the basis of the share of the value of obtained and (or) newly created facility (-ies) of fixed asserts.  
Could Russia also indicate what percentage  of recipients are engaged in aircraft 
manufacturing?  
Reply 
 
In 2012 none of the enterprises involved in ai rcraft manufacturing applied and consequently 
received tax reduction provided by the law of the Irkutsk region of 8.10.07 No. 75-RL "On Property 
Tax for organizations".    
                                               
1 G/SCM/Q2/RUS/1. 
2 G/SCM/N/253/RUS.   G/SCM/Q2/RUS/4 
 
- 2 - 
 
  Page 27, Ulyanovsk region, Support of aircraft industry: 
 Could Russia please provide more informatio n on the eligibility requirements of this 
programme, as well as on the tax reduction offered and recipients? 
 
Reply 
 
Under the law of the Ulyanovsk region of 29. 05.12 No. 61-ZO "On the establishment of the 
property tax rate for organizations of the aircraft industry, involved in manufacturing and sale of aircrafts" organizations of the aircraft industry, involved in manufacturing and sale of aircrafts are eligible for property tax incentive. In accordance with the law the tax rate is fixed at 0.95% 
(instead of 2.2%) per year of the average cost of assets of such organizations. 
 Recipients of this programme are organizations enga ged in the aircraft industry and main taxpayer 
is CJC "Aviastar-SP".  
 Page 28, Yaroslavl region, Support of light  industry, chemical, petro industry and 
mechanical engineering: 
 Could Russia please provide more informatio n on the eligibility requirements of this 
programme and the grants and tax incentives offered?  
 
Reply 
 
In accordance with the regional programme of modernization and innovative development of the 
industry of Yaroslavl region for 2001 – 2013 years, industrial subsidies are granted to organizations, based on their requests and in accordance with conditions and criteria, stipulated by 
the regional legislation. These criteria are based on main parameters of economic activity of the 
applicant, such as patents, level of wages, num ber of professional employees, amount of taxes 
paid.   
Could Russia also indicate what percentage  of recipients are engaged in aircraft 
manufacturing?  
Reply 
 
In the Yaroslavl region there are no organizati ons, involved in the aircraft manufacturing. 
 
UN-NOTIFIED PROGRAMME  Canada understands that through its Federal Targeted Programme entitled ''Strategy for 
the development of the aviation industry fo r the period up to 2015'' (administered by 
the Ministry of Industry and Trade), Russi a supports R&D work in the civil aircraft 
industry. 
 
Could Russia please explain why this prog ramme was not notified? Also, could Russia 
please provide background information on this programme, including its policy 
objective/purpose, eligibility requirements, form of subsidies, amount provided, 
recipients and duration.  Reply 
 Information on other subsidies shall be provided in addition to the Notification G/SCM/N/253/RUS.   
 
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