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MIL OSI Translation. Region: Russian Federation –

The government continues to create attractive business conditions for investors, including providing incentives and preferences, and reducing the administrative burden. As part of this work, on behalf of the President, amendments to the Tax Code of the Russian Federation were prepared. The bill was approved at meeting of the Government on June 10 and will soon go to the State Duma.

The changes concern residents of the special economic zone (SEZ) in the Kaliningrad region. In particular, it is proposed for them to extend the application of the reduced rate of insurance premiums (7.6%) from 7 to 10 years and exclude the deadline for the application of the privilege. Currently, residents can apply a preferential tariff only until the end of 2025. In addition, today only those companies that are included in the register of SEZ residents in the period from 2018 to 2022 can receive the privilege. The bill proposes to extend the benefits to all residents included in the register after 2018.

Such measures will allow businesses to channel funds for the implementation of promising projects and create new jobs, as well as increase the attractiveness of the SEZ regime in the Kaliningrad region for future residents.

Special economic zones are created for the development of the manufacturing industry, high-tech industries, tourism and port infrastructure. Accommodation in the SEZ gives business a number of advantages. We are talking about minimizing administrative barriers, tax incentives and customs preferences, and reducing rental payments.

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

MIL OSI Russia News