Following a working visit to Sakhalin region, the Russian Prime Minister asked the competent ministries to prepare and submit to the Government of Russia until September 01, 2021 their consolidated proposals regarding the creation of a special economic zone with a preferential regime on the territory of the Kuril Islands, providing the most competitive conditions for doing business, including:
(i) exemption from corporate income tax, VAT, corporate property tax, land tax, transport tax for a certain period;
(ii) customs procedure of a free customs zone;
(iii) reduced rates of social security charges of 7.6% for a certain period.
The new regime will not apply to intermediary activities, manufacturing of excisable goods, extraction and (or) processing of hydrocarbons and catch of valuable aquatic biological resources.
NAZALI TAX & LEGAL