The Law of the Leningrad Region as of December 29, 2012, № 113-oz "On State support of the organizations engaged in investment activity in the Leningrad Region, and Amendments to Certain Legislative Acts of the Leningrad Region" has been adopted at the third readings.The Regional Law № 24-oz "On State Support of Investment Activities in the Leningrad Region" adopted in 1997 is one of the most transparent and comprehensible for foreign and Russian investors. More than 160 contracts are concluded between the Leningrad Region Authorities and the investors since this Law has been adopted. Not all the Paragraphs of the Law 24-oz have been recently observed. In particular, the procedure of coordinating the documents filed by investors for obtaining the most favorable treatment is extremely time-consuming. In order to reduce the administrative obstacles, as well as to simplify the procedures of obtaining the most favorable treatment for investors at realizing their investment projects in the Leningrad Region, the Law № 113-oz "On State support of the organizations engaged in investment activities in the Leningrad Region, and amendments to certain legislative Acts of the Leningrad Region" as of December 29, 2012 has been adopted to replace the Law 24-oz.

As well as the previous one, the Law 113-oz provides establishing minimal rates of property tax and corporate income tax of the organizations to be credited to the Leningrad regional budget:

• property tax rate is zero percent concerning the property established, acquired through  investments;
• the corporate income tax rate in the budget of the Leningrad Region is 13.5 percent.

The main distinctions of the Law 113 oz from the previous wording of 24-oz are as follows:

• no granting of subsidies to enterprises-investors for paying their income tax in the budget of the Leningrad Region is foreseen by the Law 113-oz;
• the benefits are granted for a fixed period of time from four (4) to eight (8) years depending on the amount of investment and economic activity. Previously, the benefits were provided to the project payback period, multiplied by two years;
• the minimum investment volume (300 Mln. Rubles.) is determined, in which is possible to conclude an agreement for obtaining the investment activity State support. No restrictions concerning the investment amount were imposed earlier;

The benefits are provided "according to actual investments" rather than on the basis of the investment project business plan. Thus, as long as fixed asset initial cost of the objects put into operation does not exceed 300 Mln. rubles, the investing enterprises will not be able to conclude any State support investment agreements and, accordingly, will have to pay full volume taxes to the Leningrad Region budget.