On 7 July the State Duma adopted in the third reading the package of Federal laws on state support of entrepreneurial activities in the Arctic zone of the Russian Federation. Further, the package of Federal laws will be forwarded for consideration to the Federation Council. The documents will enter into force 45 days after signature by the President and official publication.
A package of laws aimed at stimulating creation in the Arctic of new businesses and high-paying jobs for the citizens of the country. They provide that the entire Russian Arctic, including Murmansk oblast, becomes a special economic zone with a wide range of tax incentives and non-tax preferences for business.
Federal laws provide the following tax incentives:
- Zero rate is payable to the Federal budget of the profit tax within 10 years after receiving the first profit for all activities except mining).
- Reduced up to 0%, the rates payable to the regional budget of income taxes, property, land, a reduction of up to 1% on a simplified tax system (the specific parameters of such benefits will be established by the regions after the entry into force of a package of Federal laws).
- Reimbursement of expenses for payment of insurance contributions to state extra-budgetary funds to the final rate of 7.6% for all activities except mining.
- Tax deduction of mineral extraction tax in the amount of infrastructure investments required for the development of new deposits of solid minerals (the degree of depletion of stocks should not exceed 0.01% by January 1, 2021), as well as investments in new processing and refining capacity.
- The establishment of a 0% VAT in relation to services, icebreaking, marine transportation and transshipment of export-oriented goods.
For investors in the Arctic zone will be simplified to a series of administrative procedures related to scheduled and unscheduled inspections. Provides for the possibility of Arctic customs procedure of free customs zone for the separate areas of seaports, airports, land residents. Also, the public authorities have the right, without bidding, to provide land to residents.
The conditions for obtaining resident status of the Arctic zone:
- Registration of a legal entity (individual entrepreneur) on the territory of the Arctic.
- The implementation of a new investment project or the launch of a new economic activity with capital investment of not less than 1 million rubles.
- The absence of debt on taxes and levies larger than 25% of the book value of assets.
- A potential resident must not be under bankruptcy, liquidation or reorganization.
The process of obtaining resident status in the Arctic zone will be carried out electronically on the investment portal of the arctic-russia.ru.
Source: minvr.ru