Crimea authorities propose specific taxation for Crimea SEZ
The Ministry of Economic Development of Crimea has explained the specific features of taxation in the special economic zone of the region. According to the press center of the regional government, the SEZ is to feature special treatment including preferential taxation and application of free customs zone procedures.
Zero rate of profit tax in the part payable to the federal budget is set for SEZ participants for a 10-year period. In the part payable to the budget of the Crimea Republic, the Law of Crimea sets forth the following profit tax rates: 2% for 3 years from the moment of registry; 6% from the 4th to the 8th year; 13.5% from the 9th year.
SEZ participants will enjoy property tax exemption for 10 years as well as land tax exemption for 3 years from the month of commencement of ownership;
Reduced rates of insurance payment (7.6% including 6% into the Pension Fund of the Russian Federation, 1.5% - into the Social Insurance Fund of RF, 0.1% - into the Federal Compulsory Medical Insurance Fund) will be proposed to the participants registered during the first three years.
The volume of capital investments within the first 3 years should be at least RUB 30 mln for legal entities and at least RUB 3 mln for individual entrepreneurs.
The main purpose of special economic zones is in the solution of strategic tasks of development of the state as a whole or in separate territories: foreign trade, economic, social, regional and scientific tasks.
SEZ in the Republic of Crimea and Sevastopol is effective from January 1, 2015, from the moment when the Federal Law No 377 “On the Development of the Crimean Federal District and on Creation of a Special Economic Zone in Crimea and Sevastopol” came into force.
