Special economical zones in Russia

26th of May 2013
There are four types of special economic zones in Russia:

• Industrial production zones or industrial SEZ.
• Technical development zones or innovative SEZ.
• Port zones
• Tourist and recreation zones or tourist SEZ

Ready Infrastructure

The infrastructure of special economic zones: engineering, transport, social, customs, etc. is financed from the budgets of all levels (federal budget, the budget of the Russian Federationsubject, the local budget)

Investors are provided with the necessary area of ​​land with allutilities (heat, electricity, gas, water, telecommunications, etc.).

Given that, as a rule, investors of special economic zones do not pay for connection to facilities. Ready infrastructure provided by the state helps significantly reduce the costs of creating new enterprises, as well as save time.

Customs infrastructure

Customs posts on the territory of special economic zones are working twenty-four seven. This helps significantly reduce time required for clearance of goods and vehicles in a special customs regime.

Office center

Modern business centers, conference rooms, meeting rooms, offices of banks, furnished offices, restaurants, gyms are built in special economic zones – all conditions for companies-investors employees’ comfortable work are created.

     Road infrastructure

Roads, logistics centers, container yards are being actively built in special economic zones of all types. Investors of industrial production zones can use the territory’s railroad tracks to send bulky cargo.

Functions to create real property within the boundaries of the SEZ and at the adjacent territory, as well as manage it and previously created property is performed by the Stock Company (OAO (JSC) “Special Economic Zones”), one hundred percent of stocks is owned by the Russian Federation.


Tax incentives for residents of special economic zones

There are common tax incentives for all types of special economic zones:

1.     For residents of all types of zones a reduced rate of income tax is established, which is to be paid to the budgets of the subjects of the Russian Federation.

2.     Residents are exempt from property tax for a period of 5-10 years, depending on the zone, after registration of the property under the following conditions:

  • the property is created or acquired in order to conduct activities in SEZ;
  • the property is located within SEZ;
  • the property is used in SEZ.

3.    Preferences on transport tax are set by the subjects of theRussian Federation, on the territory of which special economic zones are created. Investors benefit from the transport tax, which is provided after registration of the vehicle.

4.     At the federal level, investors are exempt from the land tax for 5-10 years, depending on the zone, after obtaining the right of ownership of land, located in SEZ.


The administrative regime and the “single window” system

In order to create a favorable climate for business development, facilitate interaction with public authorities and reduce investors’, temporary costs, “single window” system is functioning in special economic zones.

“Single window” system includes:

• receiving a complex of public services in one place;

• possibilities of reception and issuance of documents, as well as their preliminary approval in electronic form;

• ensuring continued access of investors to information about the status of submitted documents and decisions made.

 “Single window” system is a single point for submitting documents needed to address issues of property lease, land acquisition, property right registration, building permits, obtaining technical conditions for connection to engineering and technical support networks.

Based on surveys conducted among companies-investors, a list of state services necessary for effective business activity is determined. This results in a decision to involve to the work with the “single window” system a number of government agencies (Federal Tax Service of Russia, Federal Customs Service of Russia, the Federal Migration Service of Russia, etc.). Agencies provide services related to Receiving and issuing the required documents.

Provision of public services through the “single window” system is administered in a specially equipped room (“single window” office), located in the administrative and business centers of special economic zones.