Elektrogorsk Furniture Cluster Russia Production Sites with Furniture Clusters

1 SZCZECINEK FURNITURE CLUSTER 5 - TVILUM - STOL-TAP - GRZEŚKOWIAK - BHK - GREEN ANGEL - WOOD TECHNOLOGY INSTITUTE - POZNAŃ - ABO 2 SMORGON FURNITURE CLUSTER

USA

3 LAPOVO FURNITURE CLUSTER

4 SZOMBATHELY FURNITURE CLUSTER 6

5 OXFORD FURNITURE CLUSTER 2 1

6 ELEKTROGORSK FURNITURE CLUSTER

7 VELIKO TARNOVO FURNITURE CLUSTER 4 8

8 SEBES FURNITURE CLUSTER 3 7

2 3 Support for businesses

• We would like to share our location and extend our premises in order to provide our partners with a built area to install furniture production facilities. • The required infrastructure is already in place: Our location is equipped with high voltage power supply, gas supply, adequate water supply and waste water treatment facilities. Separate meters will be provided for the furniture factory. • Property tax and local fees are administrated by Kronospan. • Close proximity between the two manufacturing sites results in near zero transportation costs. • Just in time delivery of raw and melamine-faced particleboard will result in no stock – which eliminates the burden on cash fl ow. • Kronospan will keep the agreed minimum stock levels. • We would provide you with access to our extensive product portfolio. • You could benefi t from technical support in material processing on-site. Our engineers are experienced in both furniture production technology and equipment – whether that’s mechanical, electrical, automation software or robotics. • Kronospan will support you with administrative issues, including registration of a legal entity, the local register and banks. • We could also provide support with accounting, tax and payroll regulations as well as reconciliation of local accounting with internal reporting. • We will assist you with your recruitment process with our HR specialists and database. • You could receive support from the on-site Kronospan design and marketing department.

4 5 Kronospan Worldwide Production Sites: Furniture Clusters: 1 Lungötz, Austria 15 Zvolen, Slovakia 29 Brasov, Romania 5 Szczecinek, Poland

2 Salzburg, Austria 16 Egorievsk, Russia 30 Kastamonu, Turkey 17 Sebes, Romania

3 Chirk, United Kingdom 17 Sebes, Romania 31 Smorgon, Belarus 21 Oxford, USA

4 Sandebeck, Germany 18 Bjelovar, Croatia 32 Burgos, Spain 23 Veliko Tarnovo, Bulgaria

5 Szczecinek, Poland 19 Novovolynsk, Ukraine 33 Salas de los Infantes, Spain 26 Szombathely, Hungary

6 Poznan, Poland 20 Mohacs, Hungary 34 Elektrogorsk, Russia 27 Lapovo, Serbia

7 Lampertswalde, Germany 21 Oxford, USA 35 Ufa, Russia 31 Smorgon, Belarus

8 Sanem, Luxembourg 22 Riga, Latvia 36 Mogilev, Belarus 34 Elektrogorsk, Russia 22

9 Jihlava, Czech Republic 23 Veliko Tarnovo, Bulgaria 37 Auxerre, France USA CHINA 10 Pustków, Poland 24 Ponterosso, Italy 38 Le Creusot, France

11 Burgas, Bulgaria 25 Spremberg, Germany 39 Ryomgaard, Denmark

12 Mielec, Poland 26 Szombathely, Hungary 40 Clarion, USA

13 Danyang, China 27 Lapovo, Serbia 41 Grodno, Belarus

14 Bischweier, Germany 28 Strzelce Opolskie, Poland 42 Jaslo, Poland Chemical Plants: 1 Chirk, United Kingdom 8 Sebes, Romania

2 Burgos, Spain 9 Mogilev, Belarus

3 Aarhus, Denmark 10 Egorievsk, Russia

4 Lampertswalde, Germany 11 Ufa, Russia 19 5 Szczecinek, Poland 12 Kastamonu, Turkey

6 Ostrava, Czech Republic 13 Oxford, USA

7 Strazske, Slovakia 23 Distribution Centers:

1 Mouscron, Belgium 14 Krasnodar, Russia 24

2 Tárnok, Hungary 15 Goole, United Kingdom

3 Sofia, Bulgaria 16 Chatham, United Kingdom

4 Samara, Russia 17 Istanbul, Turkey 25 5 Saint Petersburg, Russia 18 Nicosia, Cyprus

6 Kiev, Ukraine 19 Kazan, Russia

7 Dnepropetrovsk, Ukraine 20 Tbilisi, Georgia

8 Penza, Russia 21 Baku, Azerbaijan

9 Ulyanovsk, Russia 22 Shanghai, China 20 10 Moscow, Russia 23 Kaunas, Lithuania 17 21 11 Yekaterinburg, Russia 24 Torun, Poland

12 Novosibirsk, Russia 25 Vtachikon, Slovakia

13 Rostov-on-Don, Russia Ports and Own Ships: 18 1 Gandia, Spain m/v Spanaco Loyalty

2 Aarhus, Denmark m/v Spanaco Reliability

3 Szczecin, Poland m/v Spanaco Simplicity

4 Constanta, Romania m/v Spanaco Fidelity

5 Enns, Austria m/v Spanaco Progress

6 7 Kronospan Excellence in Transforming Wood

Over 120 years of manufacturing experience Our core activity is the manufacture of wood-based panel products (particleboard, MDF and OSB) and related value added products. Vertical integration enables Kronospan to lead the way in both cost and innovation. We have invested in developing a vertically integrated supply chain that allows us to constantly improve upon and perfect every aspect of our products. Focus on the European Market Kronospan has more than 40 production facilities and is the world leader in the manufacture of wood–based panels. For the last 20 years our major projects have been undertaken in Eastern Europe and Russia. Wealth creation in the medium and long term Being privately owned means that we take a long term view rather than focusing on short term achievements. Decentralized organization Kronospan is made up of several manufacturing groups. This allows decision making by local management. As a result we can be close to our customers, our suppliers of goods and services and our people. This provides a strong platform for growth. The structure also allows us to ring fence political and economic risks where appropriate. With this we get more commitment, more ideas which allow individuals and the company to grow. Customer service We aim to be the most service-oriented supplier in our sector. Our extensive market coverage and wide product range give us a signifi cant competitive advantage. At Kronospan, we are close to our customers and our locations are a maximum of 400 km or 8 hours by truck from our customers which is a key advantage resulting in reduced transport costs, hence Kronospan can offer the best package. Advanced technology We have pioneered many of our industry’s key advances and will continue to lead product development and innovation in the future. Our production asset quality is also fi rst class. We are here to lead, not to follow; using for example state-of-the-art fi lter technology. Cost leadership Although our structure is decentralised we benchmark our production sites and with the support of our technical shared service centre ensure that they remain effi cient low cost producers. Local fi nancing Financing is obtained at a local level and we look for long term banking relationships. Our aim is to keep foreign exchange risks under control and therefore require fi nance as much as possible locally. Central support We use shared services where it is important and only centralise when and where it makes sense. Environmental responsibility Our aim is to manufacture with the least environmental impact and the maximum raw material yield – no waste.

8 9 Inspiration and innovation

Kronospan is the global leader in the production of wood-based boards and panels. Our products are used everywhere: from fl oors and furniture to frame constructions. With over 100 years of market presence, we have accumulated a wealth of experience in many markets, continuously innovating and investing ever since the inception of our fi rm. All of this continues to translate into Kronospan's new products, systems and advanced technologies. Kronospan's global product range, which is divided into Kronodesign, Kronobuild and Krono Original, offers unlimited design opportunities to make high-quality furniture, interiors or buildings.

10 11 Murmańsk 1925 km Accessibility

Elektrogorsk is a town in Moscow Oblast, Russia, located 75 kilometers (47 mi) east of Moscow.

Helsinki 1188 km Oslo Petersburg ??? km Stockholm 830 km E30 1665 km Tallinn 1146 km E119

E105 Elektrogorsk Riga Moscow 1013 km 80 km Copenhagen Ufa ??? km 1265 km

Vilnius 1037 km

Dublin Hamburg Minsk ??? km ??? km 814 km Amsterdam Penza ??? km 569 km Berlin Warsaw 1912 km 1359 km London ??? km Brussels ??? km Frankfurt Prague Kiev Charków 942 km ??? km 2019 km 779 km

Vienna Bratislava Stuttgart 2027 km 2020 km Salzburg Wołgograd Paris ??? km Munich 931 km ??? km 2461 km 2292 km

Zurich Budapest Chisinau ??? km 1920 km 1408 km Ljubljana Krasnodar 1398 km Milan 2402 km Key facts Zagreb Bucharest Symferepol ??? km 2394 km Belgrade 1852 km 1437 km 2286 km

Population 146.78 million Marseille Sarajevo ??? km 2485 km Sofia Area 17 125 191 km2 2220 km Rome Skopje 3138 km Baku Official Language Russian Tirana 2717 km Thessaloniki Istanbul Madrid 3015 km 2926 km 2398 km 2255 km ??? km Main Religion Orthodox Christianity Lisbon Capital??? km City Moscow: 12.45 million people Athens Currency Russian ruble 3387 km Teheran 3042 km GDP (2018) $ 1.630 trillion

GDP pc (2018) $ 11 105

12 13 Economic zone Development in Elektrogorsk facts and figures

Russia has a high-income mixed economy with state ownership in strategic areas of the economy. Market reforms in the 1990s privatized much of Russian industry and agriculture, with notable exceptions in the energy and defense-related sectors.

FDI In 1999, investment increased by 4.5%, the first such growth since 1990. Investment growth has continued at

Land Section 1 high rates from a very low base, with an almost 30% increase in total foreign investments in 2001 compared 95 ha to the previous year. Higher retained earnings, increased cash transactions, the positive outlook for sales, and political stability have contributed to these favorable trends. Foreign investment in Russia is very low. Cumulative investment from U.S. sources of about $4 billion are about the same as U.S. investment in Costa Rica. Over the medium-to-long term, Russian companies that do not invest to increase their competitiveness Land Section 3 will find it harder either to expand exports or protect their recent domestic market gains from higher quality 33,9 ha imports.

Land Section 2 Foreign direct investment, which includes contributions to starting capital and credits extended by foreign 10,1 ha coowners of enterprises, rose slightly in 1999 and 2000, but decreased in 2001 by about 10%. Foreign portfolio investment, which includes shares and securities, decreased dramatically in 1999, but has experienced significant growth since then. In 2001, foreign portfolio investment was $451 million, more than twice the amount from the previous year. Inward foreign investment during the 1990s was dwarfed by Russian capital flight, estimated at about $15 billion annually. During the years of recovery following the 1998 debt crisis, Area of the land plot requested m2 2 008 340 (208,34 hа) capital flight seems to have slowed. Inward investment from Cyprus and Gibraltar, two important channels for Land category 15,5% for 7 years capital flight from Russia in recent years, suggests that some Russian money is returning home. Production 0% - 1st year Sanitary protective zone (m) 300 Political and business stability Electric power supply 25 МW, rate II Gas supply Russian economy in recent years has undergone significant changes, it has become more stable and open. М3/year 106 424 000 This is confirmed by the leading rating agencies and macroeconomic indicators. 3 М /h 12 149 • Russia is a member of international organizations such as the UN, CIS, EurAsEC, CAC, CSTO, SCO, APEC, pressure Average 3 bar BRICS and others. Water supply Drinking water (m3/24 h) 12,984 • Currency – Russian Ruble (average rate has varied between 64 and 66 rubles per 1 U.S. dollar). Technical water (m3/24 h) 158,196 • Russia has a balanced budget policy and one of the lowest public debts in Europe and in the world – about Water discharge of utility fluids (m3/24 h) 12,984 $ 150 billion, or 8 % of GDP. Storm water discharge (m3/24 h) 135,648 200 units/24 h – cargo transport, 20 tons • The volume of foreign exchange reserves is more than $ 500 billion, putting Russia in third place in the Cargo turnover by trucks (trucks/24 h, load capacity) 132 units/24 – cars world (after China and Japan). Railways available (need, cargo turnover of wagons/24 ) 70 wagons/24 h Number of working places 160-180 (ООО «Kronospan»), 900 (Furniture cluster) Average salary 60 000 rubles/month Investment amount into the project 120 million Euro Needle-leaved pulpwood of the 1st quality (fir, pine) – GOST Timber demand 9463-88 –1,4 million stacked cubic meters

14 15 Current potential of Kronospan in Russia

Strategic location EGORIEVSK The cargo transportation in the Russian Federation is facilitated by the following: ³ 720 000 m of PB • Main seaports of the Russian Federation are as follows: Dalnevostochnyi (the main sea hub of the Russian Federation with its ports Vladivostok and Nakhodka), the northern basin ports- Murmansk, Arkhangelsk 2 of Melamine Faced Particleboards (seaport and river port at the same time), Dudinka and Igarka; the third main basin is the Baltic basin 36 000 000 m (with its main ports in Saint-Petersburg – Vyborg, Ust-Luga and Primorsk; and Kaliningrad); the forth main 3 maritime basin is the southern one (with its ports in Novorossiysk (the most powerful port of Russia) and 258 000 m of MDF Tuapse. The biggest ports of the Caspian Sea are represented by Astrakhan (sea port and river port at the 2 same time) and Makhachkala). 4 800 000 m of Melamine Faced MDF • Ten major airports: Sheremetyevo (Moscow), Domodedovo (Moscow), Vnukovo (Moscow), Pulkovo (Saint- 3 Petersburg), Koltsovo (Ekaterinburg), Sochi, Tolmachevo (Novosibirsk), Krasnodar and Ufa. 162 000 m of HDF • Creation of the transport corridor “Primorye-1” (The directions: Harbin – Suyfenghe – Grodekovo-Vladivostok/ 2 Vostochnyi-Nakhodka); and “Primorye-2” (which conncted the Chinese province Czilin with the ports of 39 600 000 m of Lacquered HDF Slavyanka, Zarubino and Possiet). 3 432 000 m of OSB Potential market 2 Flooring • The European Union occupies a particular place in the external trading structure of the Russian Federation. 18 000 000 m In 2008 52% of the Russian trade turnover is accounted for the European Union. decors Melamine Faced Particleboards express program • Main trade partners of the Russian Federation are: China, the Netherlands, Germany, Italy, Ukraine, Belarus, 135 Turkey, Japan, USA, Poland and Kazakhstan. • In July 2010 the Customs Union of Belarus, Kazakhstan and Russia was organized. Creation of the Customs ELEKTROGORSK Union allows stimulating the economic development and can provide an additional 15% to GDP. ³ • In March, 2010 Heads of the agricultural Ministries of Brazil, Russia, India and China signed the declaration of PB on the collaboration, which foresees implementation of four directions of the multilateral collaboration. In 480 000 m particular, increase of the agricultural goods turnover, with the further creation of the agricultural informational 2 base of BRIC countries. 24 000 000 m of Melamine Faced Particleboards 12 decors Melamine Faced Particleboards express program Human resources An average monthly salary in the Russian Federation is equivalent to € 650 (2018). UFA Work force in the Russian Federation is multilingual, well-educated and highly-skilled. • 54% of the total population is in working age (approximately 76.1 mln people) ³ 716 251 m of PB • Russia counts about 272 accredited universities, 620 State universities and approximately 352 non- 2 governmental ones. 30 043 703 m of Melamine Faced Particleboards • 95% of the high school students study a foreign language (mostly English language), 70% of them are 3 studying another language, such as German, French, Chinese, Italian and Spanish. 138 862 m of OSB • 54% of people at the age of 25-64 are graduated from higher education institutions. • 97% of the schools have Internet access. 168 decors Melamine Faced Particleboards express program

16 17 Kronospan Business environment in Russia

Kronospan facilities in Russia Legal structures for starting a business in Russia The company Kronospan, wood boards manufacturer, has been operating in the Russian market since 2002. Investors often face problems when choosing among legal structures for their business in Russia. Below, At that period the Investment Agreement on the first LLC “Kronospan” production plant construction in the city comments are provided on the following options: of Egorievsk, Moscow region was concluded. The plant construction started in the town of Egorievsk, Moscow • Direct sales, region, located at the distance of 100 km from Moscow. The plant total area in Egorievsk is equivalent to 100 Ha, and the amount of employees = 800 people. Production process at the new plant started in 2004, and • Distributorship contract, the first MDF production line commissioning was completed. From 2004 Kronospan in Egorievsk became the • Representative office or branch, manufacturer of the finishing materials, such as laminated flooring and wall panels. In 2006 construction of • Russian subsidiary. the Particle board production line and lamination line was completed. This way Kronospan had strengthened its position in the Russian market, and currently the plant is producing around 190 decors of the laminated An FLE can choose to establish a presence in Russia through a representative office (RO) or branch. An RO particle board. Also the plant in Egorievsk has in its range HDF and Lacquered HDF board. or a branch is not a Russian legal entity, but is a legal part of the FLE, and, therefore, the head office bears Potential capacity of the plant in Egorievsk is constantly being improved with investments into the new full responsibility for the obligations and actions of the RO or branch. technologies and production lines. In 2014 the new production line of OSB production was started up. An RO is authorized to conduct certain “preparatory and auxiliary” activities for its head office. A branch, on At the end of 2013 the second Kronospan plant in Elektrogorsk was launched. It is located in the Moscow the other hand, is able to conduct all activities that the head office itself performs, including the execution region at the distance of 66 km from the capital. The plant started its operation from the moment of the new of sales contracts. Depending on the exact scope and nature of activities, both ROs and branches have the PB line start-up. Currently laminated particle board production takes place as well, and the amount of the right to create a taxable presence in Russia for their headquarter company. produced decors is constantly increasing. The company Kronospan is successfully developing in the area of the Russian Federation, and the new An FLE can choose to establish a presence in Russia through a Russian subsidiary. The most common investment projects are being implemented. business structures in Russia are Limited Liability Companies (LLC) and Joint Stock Companies (JSC). In an On August 17th, 2012 the Investment Agreement on the construction of the third plant at the area of the LLC (Russian abbreviation – ООО), the participation units attributable to shareholders (participants) are not Russian Federation, LLC “Kronospan Bashkortostan”, was signed. In August 2015 the first Particle board considered as securities under Russian securities legislation. Shares in a JSC are considered to be securities was produced and the particle board lamination line was launched. In 2018 the new production line of OSB and are subject to registration with the Bank of Russia. A JSC can be either public (PJSC), meaning publicly production was started up. held (Russian abbreviation – PAO), or non-public (JSC), meaning privately held (Russian abbreviation – AO). Thanks to a stable position in the market and efficient strategy of development Kronospan is a reliable Foreign companies often use LLCs to conduct wholly-owned businesses in Russia. The LLC law provides and perspective business partner. A wide range of the manufactured products, provision of the production for many similar provisions to those in the JSC Law. However, there are certain distinctions. Generally, one facilities with the last generation equipment, as well as a high efficiency of the organizational structure allow participant (individual or legal entity) has the right to establish an LLC or JSC. However, another solely owned to develop an individual approach to each Client using the company visit card. legal entity cannot establish an LLC or JSC as a one-man company (i.e. 100 percent owned).

Tax system overview Russian tax legislation consists of the Tax Code of the Russian Federation (hereinafter, the “Tax Code”) and laws adopted in accordance with it. Taxes and levies are imposed in Russia on the Federal, regional and local levels. Federal taxes and levies are those established by the Tax Code and by Federal Law and are paid throughout the Russian Federation. As of the 1st of January, 2012, the following Federal taxes and levies are effective: • Value-Added Tax (VAT), • Excise tax, • Personal Income Tax (PIT). • Profits tax. • Mineral extraction tax.

18 19 • Water tax, The Tax Code provides for certain types of VAT exemptions, primarily related to financial and social welfare • Levies for natural and biological resources consumption, services. • State duty. Taxpayers submit VAT returns on a quarterly basis and have the right to pay the VAT in three equal installments. Regional taxes and levies are those established by the Tax Code and by tax laws of the regions of the Russian Federation and are paid in the appropriate regions. Regional taxes include property tax, gambling tax and transport tax. PERSONAL TAXATION (MAIN TAXES) Local taxes and levies are those introduced by the Tax Code and by the regulations of municipal authorities and are paid in the appropriate municipal Tax system overview areas. Local taxes are represented by land Personal income tax tax and personal property tax. Tax residents are subject to PIT on worldwide income, whereas nonresidents are subject to PIT only on Local (or regional) legislation only has the right to introduce those types of taxes and levies stipulated by the Russian-source income. Tax Code. When doing so, the local (regional) authorities are allowed to establish the following elements of Generally, tax residents pay PIT on the majority of income types at a 13 percent flat rate. taxation: Tax residents can benefit from claiming standard, social, property related and professional deductions. Individuals who possess immovable property are subject to personal property tax. • Tax concessions, Individuals possessing transport vehicles are subject to transport tax. • Tax rates within the limits established by the Tax Code, Low costs of the services in the Russian Federation are as follows: • Procedures and deadlines for tax payments. • Electricity – 0.083 €/kWh

• Gas – 0.089 €/m3 Tax registration requirements • Water: cold water – 0.34 €; hot water supply – 2.54 € There is no separate tax registration for VAT purposes – a taxpayer obtains a single tax ID number for all taxes. However, taxpayers have to obtain supplementary tax registration ID numbers (‘KPP’) with the tax • Cost of labor: Min. salary – 128.23 €; Max. Salary – 650 €. authorities where their separate subdivisions are located. A separate subdivision is a subdivision separately located from the head office (e.g. other city). A separate State support subdivision implies the creation of stationary working places for periods longer than one month. FLEs have to obtain tax registration with the local tax authorities within 30 calendar days from the day activities begin at • Over the past and current years the Government of the Russian Federation has adopted 42 State programs that location. which cover all sectors of the national economy and the social sphere as well as elaborated “road maps” for their execution.

• The efforts of the state and corporate development institutions are aimed at the implementation of large BUSINESS TAXATION (MAIN TAXES) investment, primarily infrastructure projects. • There are 60 such projects, many of which have been already completed. Several hundred projects are Profits tax underway. As part of these projects the State finances the development of infrastructure whereas the industrial facilities are financed by private investments. The maximum profits tax rate is 20 percent, including 3 percent paid to the Federal budget and 17 percent to the regional budget. The regional profits tax rate can be reduced to 12.5 percent at the discretion of the • The President of the Russian Federation authorized the investment of 450 billion rubles from the National regional authorities. Welfare Fund in order to finance large transport projects such as modernization of Trans-Siberian railway, construction of a high-speed railway line Moscow-Kazan and construction of a central motorway ring around The methodology applied for profits tax purposes should be clearly explained in the taxpayer’s tax accounting Moscow. policy. Once chosen, the tax accounting policy cannot be changed during the financial year, except in cases of changes of legislation. • Russia is generally characterized by the execution of megaprojects which act as drivers for the national economy, stimulate markets and generate revenues of the budgeting system, often developing the whole branches of the national economy. For example: Value added tax – 300th Anniversary of Saint-Petersburg Sale of goods, works, services (including those supplied free-of-charge or transferred for the company’s own consumption), transfer of property rights, construction conducted by and for the company and import of – APEC Summit goods into Russia are subject to Russian VAT. – 1000th Anniversary of Kazan and Universiade Generally, the sales of goods (works, services) are taxable at a standard VAT rate of 20 percent. – Winter Olympic Games in Sochi, 2014

20 21 – FIFA World Cup in 2018, etc. Frequency of Tax Tax Rate Possible incentive • International transport corridors, such as Europe – Western China, the second and the ninth International Payment Pan-European transport corridors, Northern Sea Route, will be further developed in the coming years. *4,5% - for the participants of the Advanced payments Corporate income investment projects under the special 20% are realized on a tax conditions following (According to the Financial support for investors monthly basis Moscow region legislation) 13% - if the dividends are received by There is no country in the world which can successfully be developed without capital investments. Certain Russian organizations from the foreign ones; Upon the income taxation preferences of the investors are foreseen by the legislation system of each country. And Russia is Withholding Tax not an exception to the common rule. Our country provides different measures of the governmental support 15% - if foreign organizations receive the payment in order to improve the investment's climate. income as the dividends of the Russian organizations stocks • Low rates are used for the taxes which constitute the most serious charge for the companies realizing the On a quarterly investment projects. Among these taxes we can mention VAT, income tax and companies' property taxes. 20% - standard basis; monthly – VAT 0% - export a third part of the • The possible incentive in case of income taxes for the investors can reach up to 4,5% - for the participants of 10% - special rate (e.g., sugar, etc.) sum per a quarterly the investment projects under the special conditions following (According to the Moscow region legislation) account • In some regions of the Russian federation reduction of the property taxes can reach up to 50% (2.2% - the Benefits may be provided for the participants of the investment projects limited tax rate). Property taxes 2.2% Quarterly under the special conditions following • In the special economic zones the following preferences are established for the potential investors: tax (According to the Moscow region holidays for certain types of taxes; reduced tax rates on the organizations income, as well as for the legislation) insurance payments; use of the increased coefficient for calculation of depreciation expenses. 13% Taxes deduction (when the children are born): for the 1st child – 1400 Rubles; Personal Income for the 2nd child – 1400 Rubles; monthly Tax for the 3rd child – 3000 Rubles – these are the sums from which ones the taxes Tax System in the amount of 13% are not deducted Pension/disability 5,1% – medical insurance; monthly To be paid by the employer insurance 22% - pension insurance The Moscow Region Government has attractive offers for investment projects of those companies that 2.9% - to the Social Insurance Fund; Health insurance monthly To be paid by the employer register legal entity in Russia Federation, such as the Law №151/2004-OЗ from 24.11.2004, Article 26.15 “For 1.4% - accident insurance organizations that aren’t considered subjects of small business”. The Law applies to wood processing and forestry branches and is divided into three main segments:

Strategic Priority Significant

Investments: over 3 billion RUB over 1 billion RUB over 200 million RUB

Profit tax: 15,5% for 7 years 15,5% for 5 years 15,5% for 3 years

0% - 1st year; 0% - 1st year; 0% - 1st year; Property tax: 0,5% - from 2nd to 5th years; 1,5% 0,5% - from 2nd to 3rd years; 1,5% 1,1% - from 2nd to 3rd years - from 6th to 8th years - from 4th to 5th years

22 23 kronospan-express.com Print errors are subject to change. to subject are errors Print