Moscow tries to attracts the oil companies.

Tax breaks are promised from the capital  for"corporate registration".

The Moscow government has submitted a draft law on reducing the regional profit tax for oil companies from 18% to 13.5% to the Moscow City Duma. By this initiative the city authorities want to retain and attract the capital of "the largest taxpayers" of the industry, planning to get additional 2 billion roubles per year from 2015. Although the metropolitan government states that the project is designed for the large oil groups think about changing "Moscow registration", the market participants believe that it is able to attract only independent sellers of petroleum products.

The draft law "On establishing the tax rate on the profits for the oil industry organizations" was prepared by the Department of Economic Policy and Development of Moscow. Yesterday it was endorsed by the Moscow City Duma budget committee, and on May 7th the document will be considered at its plenary session. It is proposed to reduce the tax rate to - 13.5 % instead of the standard regional rate of 18% for the oil industry in 2015. Such a reduction – is the maximum "discount", which regions are entitled to give the taxpayers in accordance with the Russian Tax Code. Lets recall that the total tax rate is 20%, and 2 percentage points of it are reserved for the federal budget.