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MIL OSI Translation. Region: Russian Federation –

Source: Ministry of Economic Development (Russia) – An important disclaimer is at the bottom of this article.

More than 60 companies have registered in special administrative districts (SAD) on the Russian and Oktyabrsky islands in Q1 2024. This was announced by Ilya Torosov, First Deputy Minister of Economic Development, following the results of the report of the Chairman of the Government Mikhail Mishustin in the State Duma on April 3.

Special administrative districts are a unique legal regime in force since 2018 in certain territories where foreign companies can “relocate”.

“The Ministry of Economic Development is constantly improving the new direction in corporate law on creating conditions for the work of ATS. This work is carried out under the leadership of First Deputy Prime Minister of the Russian Federation Andrey Belousov. We are actively cooperating with business, relying on the best practices of international offshore jurisdictions. And we can already see that ATSs are very much in demand by Russian business. There are now 390 registered participants in the districts. Since the end of 2023, more than 60 companies have moved to ATSs. In addition, ATSs create all the necessary prerequisites for attracting investments in the development of the Kaliningrad region and Primorsky Krai”, – said Ilya Torosov, First Deputy Minister of Economic Development.

The 390 participants include 388 international companies and 2 international public benefit foundations.

Of these, 92 international companies on Russky Island, 296 companies on Oktyabrsky Island and 2 international public benefit foundations.

At the end of 2023, 332 participants were registered with the ATS (331 international companies and 1 international public benefit foundation. In December 2023, the Federation Council approved the law on amendments to the Tax Code.

Under the amendments, the list of forms of investment by international holding companies for the application of reduced profit tax rates has been extended. In particular, the Tax Code establishes a procedure for the prior approval of forms of investment chosen by a company with the supreme executive body of a constituent entity of the Russian Federation.

Please note; This information is raw content directly from the source of the information. It is accurate to what the source states and does not reflect the position of MIL-OSI or its customers.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

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

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