Legislation
The State Council of the republic has passed a number of laws aimed at encouraging business activity in Chuvashia. The income tax rate is 35%. One-third of this sum is transferred to the Russian Federation and two-thirds are contributed to the Chuvash budget (this is called the Republican portion). Notable tax privileges include:
- The profit tax rate (Republican portion) for foreign enterprises, joint ventures, and filial branches of foreign enterprises is five percent during the first three years of operation in Chuvashia. To qualify for this benefit, foreign enterprises must contribute at least $100,000 and 70% of the venture’s initial capital.
- Enterprises and organizations producing consumer goods, producing industrial-technical products, and processing agricultural products are exempt from profit tax (Republican portion) for a period of three years.
While not particularly relevant to foreign investors, the government’s commitment to economic growth can be evidenced by its efforts to encourage small business growth through the simplification of tax and business registration processes for entrepreneurs.
Read more about this topic: Economy Of The Chuvash Republic
Famous quotes containing the word legislation:
“The laboring man and the trade-unionist, if I understand him, asks only equality before the law. Class legislation and unequal privilege, though expressly in his favor, will in the end work no benefit to him or to society.”
—William Howard Taft (1857–1930)
“The conservative assumes sickness as a necessity, and his social frame is a hospital, his total legislation is for the present distress, a universe in slippers and flannels, with bib and papspoon, swallowing pills and herb-tea.”
—Ralph Waldo Emerson (1803–1882)
“The wise know that foolish legislation is a rope of sand, which perishes in the twisting.”
—Ralph Waldo Emerson (1803–1882)