Within this article, we shall commence a new series of articles exploring “How To Conduct Economic Activities” in the Far Eastern and Siberian region of Russia!
The Free Port of Vladivostok (FPV) is a territory with special regimes of customs, tax, investment and additional regulations in accordance with the federal law of 13.07.2015 “Free Port Vladivostok”.
Within the FPV, tax incentives and administrative preferences apply for residents.
The resident connects itself to the required infrastructure.
The economic development of the Far Eastern region is recognized as one of the priority areas in Russia and with that in mind a whole range of measures are being taken to create a favorable economic, investment and business climate in the region.
The experiment to create a free port in the territory of Vladivostok has thus far been recognized as incredibly successful, so much so that the
In the Far Eastern region, the FPV regime extends to 22 municipalities in 5 regions, inclusive of:
Kamchatka Krai
Khabarovsk Krai
Primorsky Krai
Sakhalin region
Chukotka Autonomous Okrug
(Notice *) After the adoption of the FPV law, foreigners are entitled to visa-free travel for 16 days in any of the abovementioned regions. You can check the residents of which countries can use the visa-free entry via the link: https://evisa.kdmid.ru/en-US/Home/Index
China, Japan, the Republic of Korea, Mongolia and the DPRK are connected with the Russian Far Eastern region by land and sea.
SO, WHAT PRIVILEGES MAY FPV RESIDENTS RECEIVE?
1). Tax Privileges (Notice*) Each region has its own tax privileges.
Income tax
For the first 5 years – 0%
For the subsequent 5 years – 12% The preferential rate in respect of the regional component of the tax is established by the constituent entity of the Russian Federation
Land tax
For the first 3 years – 0%
The preferential rate is established by the municipality
Corporate property tax
For the first 5 years – 0,5%
For the subsequent 5 years – no more than 2,2%
The preferential rate is established by the constituent entity of the Russian Federation
Unified social tax
For 10 years – 7,6%
Contributions to the Pension Fund, the Social Insurance Fund and the Federal Compulsory Medical Insurance Fund have been reduced from 30% to 7.6%
(Notice*) Each of the five regions have introduced their own tax incentives. Inquire with our professionals in order to better understand the intricacies of the taxation environment.
2). Administrative preferences (Notice*) All residents receive preferences for the implementation of their projects
Exemption from quotas when employing foreign employees
Help desk service for investors
Possibility of applying the free customs zone (FCZ) procedure
Right of the management company to defend the resident in court
3). Additional preferences
Shortened terms of obtaining permits for capital construction projects – (less than 40 days.)
Duty-free and tax-free regime of the free customs zone for residents:
– Import, storage, consumption (use) of foreign goods.
– Export of goods (equipment).
– Import of foreign goods (equipment).
Expert review:
The tax preferences provided will allow residents to reduce the tax burden by more than 2 fold in the first 5 years of operation.
HOW TO BECOME A RESIDENT OF THE FPV?
1) You need to open a legal entity in one of the regions of the FPV!
(Notice*) The minimum investment for applicants for benefits for residents of the Free Port of Vladivostok has been reduced from 5 million rubles to 500 thousand rubles. 500 thousand rubles amounts to approximately 7000$
To register a legal entity in the territory of the FPV, as well as to obtain the status of a FPV resident, please contact D’Andrea & Partners info@dandreapartners.com
Since the start of military operations in Ukraine, the European Union has imposed sanctions against Russia, with the seventh package of sanctions already implemented. In addition, from February 24th to August 2022, more than 1,000 foreign companies have left Russia or suspended their operations in the country. To avoid a shortage of goods, the Russian
Several months have passed since the beginning of Russia’s special military operation, and the European Union has introduced several packages of sanctions against Russia. The latest sixth package of sanctions was introduced on June 1st, 2022. In this article, we will consider and evaluate the impact of sanctions on the Russian economy. Introduction The unprecedented
Special Administrative Region Within this article, we shall continue our series of articles exploring “How to Conduct Economic Activities” in the Far Eastern and Siberian region of Russia! Link to previous articles: Free Port Vladivostok #FPV https://www.dandreapartners.com/free-port-vladivostok/ Advanced Special Economic Zones #ASEZ https://www.dandreapartners.com/advanced-special-economic-zone-in-siberia-and-far-east-of-russia/ What is a Special Administrative Region SAR? A Special Administrative Region (#SAR)
#Russian Desk
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The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
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The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
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The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
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The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.