SPECIAL ECONOMIC REGIMES IN PRIMORSKY TERRITORY
Tax preferences are provided for every big investment project on the territory of Primorsky Territory.
According to the region’s law, reduced tax rates are provided for projects to be realized from 2015 with the amount of capital investment, not less than 50 mln. rubles during 3 years or 500 mln. rubles during 5 years. First 5 years profit tax and property tax rates of 0%. Next 5 years – 10% and 0,5% accordingly.
Besides, it was created Advanced social-economic development territories (ADT), also it is under effect the Free port regime.
Advanced social-economic development territories
Residents of the territory are provided by land plots, equipped by necessary engineering, transport, and production infrastructure and obtain the right for simplified getting of the land plot and priority connection to infrastructure. It is provided attractive terms of tax liability and speed of formalization procedures for investors. Also, there is provided tax and customs preferences, fast-track administrative procedures, “one-stop shop” regime.
Residents of the ADT are exempted from profit tax and organization property tax in first 5 years. Next 5 years the rates of taxes are 12% and 0,5% accordingly. The insurance payment was reduced from 30% to 7,6% for first 10 years from the moment of organization work starting.
Simplify and fast-track VAT reimbursement procedure – 10 days.
It could be applied the free custom zone regime on the advanced social-economic development territories.
2015 the Government commission approved 2 such platforms on the territory of Primorsky region: “Nadezhdinskaya” and “Mikhailovsky”, RF Government Decree about creation of territories was enacted.
ADT “Nadezhdinskaya” – is multifunctional production and logistics territory of a “Greenfield” type. The territory is situated in Noviy settlement of Nadezhdinsky municipal district, in 32 km from Vladivostok on the territory of 806,8 Ha.
Agreements were signed with the total amount of 7 billion rubles.
Among the projects, there are confectionery and bakery products, prepared food and finished products plant of Primorsky Conditer Co., Ltd, and also logistics complex with public catering enterprise of Nevada-Vostok Co., Ltd.
It is developed multimodal transport and logistic complex of Income DV Co., Ltd with entering the Trans-Siberian Railway and federal highway M-60 and capacity of 420 thousand containers a year in automobile and railway fronts.
Totally, the territory will allow disposing of no less than 30 residents.
ADT “Mikhailovsky” specialization is the location of modern agricultural production with the full circle of processing, storing and effective logistic of agricultural products.
ADT is situated on the territory of three municipal districts – Mikhailovsky, Spassky and Chernigovsky – and occupy an area of 3885 Ha, including 207 Ha for agro industrial productions of potential residents.
In the framework of ADT it is planned to create transport and energy infrastructure, gas supply, communal infrastructure facilities at the expense of federal and regional funds.
Cornerstone investors – Rusagro-Primorye Co., Ltd, Mercy Trade Co., Ltd, MEZ Yug Rusi Co., Ltd, Chernigovsky agro-holding Co., Ltd.
The first potential investors of the territory are planning to realize projects for a total amount of 45 billion rubles. The projects include construction of pig-breeding farms, selected genetic center, feed factory, soya advanced processing plant to produce soybean isolates and by-products, grain receiving, cleaning, drying complex.
Ministry of the Development of the Russian Far East in cooperation with Administration of Primorsky Territory is developing the concept of the third ADT – “Russky Ostrov”, as technology and innovation, tourism and recreation center of Russia in Asia-Pacific Region.
It is supposed to develop unique innovation, technological and cultural center of the Russian Federation in Asia-Pacific Region on the territory of Russky island, to create innovation industry facilities, research and educational centers, and also cultural, carnival and mice-tourism facilities.
Laws and regulations:
The Federal Law of the Russian Federation from December 29, 2014 of No. 473-FZ "About the territories of advancing social and economic development in the Russian Federation";
The Federal Law “About alteration of some legislative acts of the Russian Federation in relation to enactment of the Federal Law "About the territories of advancing social and economic development in the Russian Federation" (introduced by the State Duma on 23.12.2014);
The Federal Law of the Russian Federation from November 29, 2014 of No. 380-FZ "About alteration of the second part of the Tax Code in relation to enactment of the Federal Law “About the territories of advancing social and economic development in the Russian Federation".
Vladivostok free port
In October, 2015 The Law “About Vladivostok free port”, signed by the president on 3 of July, 2015, went into effect. Vladivostok free port is considered to be the center for foreign trade development with Asia-Pacific countries, production, based on applying of high technologies, focused on the production of products to be competitive on the international market.
15 municipal districts of Primorsky territory are included into the Free port: Vladivostok, Artem, Nakhodka, Partizansk, Ussuriysk, Spassk-Dalny city districts, Bolshoy kamen city, Nadezhdinsky, Oktiabrsky, Olginsky, Partizansky, Pogranichny, Khasansky, Khankaisky and Shkotovsky municipal districts.
The residents of the territory are granted a remission of federal part of the organization profit tax during first 5 years. Regional rate is fixed by the subject of the Russian Federation – at most 5% during first 5 years and no less than 10% during the next 5 years. Land tax is 0% for first 5 years, and not over 60% from the tax rate, which in function on the territory, for next 5 years.
The rates of insurance reduced to 7,6%. It is provided the fast-track reimbursement procedure for value-added tax (10 days).
The free customs zone regime is applied on the territory of the free port: products, which is imported into the free customs zone, overseas products, which go for export, and goods, produced with the use of imported products, are free of customs duties. Moreover, goods transfer from one free customs zone to another within the boundaries of the free port.
In checkpoints during the border, customs and other kinds of control it is realized the “one-stop shop” principle. It is provided non-stop operation custom authorities.
Simplified visa regime for 8 days for foreign citizens, provided by the law, guarantees the increase of incoming tourism, development of tourism industry in the region.
Laws and regulations:
The Federal Law of the Russian Federation from July 13, 2015 of No. 212-FZ "About Vladivostok Free port";
The Federal Law of the Russian Federation from July 13, 2015 of No. 213-FZ “About alteration of some legislative acts of the Russian Federation in relation to enactment of the Federal Law “About Vladivostok Free port”;
The Federal Law of the Russian Federation from July 13, 2015 of No. 214-FZ “About alteration of the second part of the Tax Code in relation to enactment of the Federal Law “About Vladivostok Free port”;
Criterions for selection of residents of Vladivostok free port are approved by the Government Decree from October 20, 2015 of No. 1123.
Requirements for business plan, submitted for signing the agreement for operation as a Vladivostok free port resident, approved by the order of the Ministry for the Development of the Russian Far East from September 28, 2015 of No. 187.
The form of application for conclusion the of agreement for operation on the territory of Vladivostok free port is approved by the order of the Ministry for the Development of the Russian Far East from September 1, 2015 of No. 170.
To inquire the information about obtaining the status of Vladivostok free port resident and ADT please contact Primorsky krai development corporation:
Address in Vladivostok: 11 level, FEFU Campus, Ajax village, Russky island, 690922
Postal address: 86, Liublinskaya str., Moscow, 109382
Tel./fax: +7 495 351 26 96