For 10 years after the first profit from investment project implementation, an entrepreneur doesn’t pay a part of the profit tax, going into the Federal budget (2 percent). Regional part of the profit tax is formed according to the decision of the Far East region during the first 5 years – from 0 to 10 percent, during next 5 years – not less than 10 percent from the rate, going into the budget of the Russian Federation entities (18 percent).
Benefit from mineral replacement tax (MRT) is counted as following: during the first two years, an investor is free from MRT; in common, this benefit is valid for 10 years and during this term the amount of the benefit reducing on 20 % every 2 year.
These tax benefits will be implemented until 1 January 2029 irrespective of the date when an organization enters into the register of participants in the regional investment projects.
Tax benefits for investors in exchange for creating external infrastructure.
A bill “About making amendments in section one and two in the Fiscal code of the Russian Federation in order to stimulate modernization of external infrastructure with implement of investment projects” is made and entered into the Government of Russia.
Visa regime simplification in FPV
The law is approved by the Federal Council of the Russian Federation
The official name – “About making amendments in some legislations of the Russian Federation in the part of regulation of special factors for arrival foreign people in the Russian Federation through State border checkpoints, which situated on the territory of the Free Port Vladivostok, their staying in the territory of the Russian Federation and their departure from the Russian Federation”.
There is a possibility for foreigners, arriving into the Free Port Vladivostok to expedite 8 days exit visas under a simplified procedure – in the form of an electronic document. A visa will be valid for 30 days from the moment of its submission. Foreigners with these visas can arrive at any of five regions, which are under free port regime – Primorski Krai, Khabarovsk Krai, Chukotka, Kamchatka and Sakhalin Region with an opportunity to get around. There will be no consular charge.
The list of countries, in respect of which the simplified regime works, will be assigned by the Russian Government Decision.
Reducing energy tariffs
Some amendments were made in the law “About electricity”, which provide the reduction of energy tariffs for industrial consumers of Far East until level of the Russian average. The reduction of energy tariffs will start from 1 July 2017 and will last for 2-3 years.
The reduction of energy tariffs will give savings to some far-east enterprises up to 20 milliards rubles per year. The Russian average level of energy tariff is 3 rubles 19 kopecks/kwh.
The Far Eastern hectare
Starting February 1, any Russian citizen can claim their free hectare of land. Providing land for 5 years, after which they can be sign a leasehold or register property.
Over 69000 requests have been received from Russian citizens responding to a state-backed program giving away a free hectare of land in the Far East. From 1 till 15 February people send about 28000 requests from all regions of Russia. People have 6,5 lands. Daily people send more than 2000 requests.
7,2 million visiting of website “ToFarEast.RF’ are registered from the beginning of February.
30 standards decisions are made for the land usage. On the website of Agency for human capital development (AHCD) there is the publication of the register of supporting measures for small and medium-sized business.
AHCD has finished the survey about the most demanded measures of government support. Our citizens consider the most important issues, which are connected with provision of utilities line on the land (more than 70% respondents), governmental financial support for developing new territories (more than 50%), giving opportunities for business and support in accommodation building.
AHCD is preparing for opening a specialized support Center for citizens – receivers of “far east hectare”, the main aim of which will be providing combining decisions for receiving support measures and leading each project for developing “hectares” in the Far East. The citizens will receive help in cooperation for production and marketing affairs, also it is planning to make centers for cooperative usage of some technical means and small engines.
Available credit for small and medium-sized business
Program “Available credit for small and medium-sized business” has been implementing by bank-partners since November 2016. Depending on earmarking (building up the working capital or investments), credits are given on the 3-10 year term. Average weighted tax rate is about 11% per year. Since November 2016 year as a pilot project in conjunction with Sberbank in the Far East 170 projects have already funded.
The program implementation provides increase of Far East GRP until 2026 for 27 milliard rubles. Funds will receive about 7,5 milliard additional taxes. Approximately 1,3 thousand new workplaces will be created.
Development of fishing industry in the Far East.
With the law “About fishing and preservation of the aquatic bioresourses” (04.07.16) introduced a new means of development this industry – quotas on the production (fishing) aquatic bioresourses on any investment objectives.
An investor with receiving the right on fishing enters into commitments to buy Russian vessels or fish-processing plants.
Increasing the term of consolidation of quota shares from 10 to 15 years. Potential capacity of investments into shipbuilding and fish-processing – up to 100 milliard of rubles.
The law makes some amendments in the aquaculture regulation.
It comes to have a right to private property on aquaculture facilities from the moment of releasing juveniles into its natural environment. Making such amendment was approved at ВЭФ-2015. Amendments concern the renegotiation of contracts about provision fish-breeding areas without bidding with conscientious clients.
Another innovation is abolition of the demand for breeding on the area special species of aquaculture and requirement of the minimum capacity aquaculture industry.
Development of fishing aquaculture in the Far East
Entrepreneurs will be provided with more than 5000 hectares for development of aquaculture in the first quarter of 2017 year.
3 lots (31,88 hectares) are in Sakhalinsk Region, 18 lots (389,45 hectares) are in Khabarovsk Krai, 33 lots (4802,2 hectares) in Primorski Krai. Schedules of auctions are published on websites of Ministry for Development of Russian Far East.
Development of the interactive part of aquaculture.
Far East Development Fund (FEDF) has begun to design internet-service with an interactive map of available aquaculture lots.
Fund is planning to create an automatic informative system, where an interactive map with the range of available Far East water areas for fishing is available. It will simplify the requests from potential investors. According to received requests, lots will be formed for auction organization, which is held on the official trade platform. For studying the lots, it’s supposed to attract investors’ funds – future users. If it is necessary investors might finance the work for studying and development fishing water areas attracting funds from Far East Development Fund with 5 % interest rate.
Investment system “Voskhod”
Investment system “Voskhod” is online platform for attraction equity and dept capitals in hectic developing company of the Far East region. The total amount of stock bonds by the end of 2016 was 0,6 milliard rubles.
In system “Voskhod” is combined an expert project appraisal, modern technologies and instruments of financial market, which are needed for their implementation. In its basis, there is fast and convenient mechanism of fast access for legal bodies to investments and deal making with just a few clicks of a mouse vie a laptop or a mobile phone. From the launch, the system has been working for funds attraction in two regions of the Far East: Primorski Krai and The Republic Sakha (Yakutia). 02.09.2016 – the first bonds allocation CRA «Алмазэргиэнбанк» (Yakutia), was attracted 500 million of rubles.
Available credit for small and medium-sized business
Program “Available credit for small and medium-sized business” has been implementing by bank-partners (with Sberbank) since November 2016. Depending on earmarking (building up the working capital or investments), credits are given on the 3-10 year term. Average weighted tax rate is about 11% per year. By 03.02.2017 124 credits have been granted in the total amount of 1,5 million of rubles.
The program implementation provides increase of Far East GRP until 2026 for 27 milliard rubles. Funds will receive about 7,5 milliard additional taxes. Approximately 1,3 thousand new workplaces will be created.
The order of entrance in Russian harbor for cruise ships has been simplified.
The relevant rule is clearly set out at the Federal law № 253-ФЗ from 3 July 2016 year. “On making amendments into some legislations of the Russian Federation in the part of improvement to legal regulation of relationships, which are connected with limitation of liability on marine claims, and also with usage of foreign vessels in internal sea waters and the territorial sea of the Russian Federation”.
Ministry of transportation has prepared it in conjunction with Ministry of Culture, and also with State Duma safety and anti-corruption Committee.
The new rules for regulating cruise activities abolish the need to obtain passes to the border zones for tourists on board ships and establish the “one stop” principle when obtaining permission to cruise, which will increase the number of cruise routes and the number of tourists.
Simplified visa order in the FPV
The bill is included in the State Duma. January 19 was considered at the State Duma Committee on State Construction and Legislation. It is envisaged that foreigners arriving in FPV can register for a single eight-day entry visa under a simplified scheme – in the form of an electronic document. The visa will be valid for 30 days from the moment of its registration with the permitted stay in Russia up to 8 days. Foreigners will be able to arrive on an electronic visa in any of the five regions where the free port regime operates – Primorski Krai, Khabarovsk, Sakhalin, Chukotka and Kamchatka, and move only in the region to which they were entered.
The Northern Sea Route
In accordance with the instruction of the President of Russia, a financial and economic model for the development of the NSR (Analytical Center under the Government) has been prepared. The Public Council of the Ministry of National Economy of Russia on January 17 held the first meeting of the new membership of the Public Council. Sergey Gabestro, Deputy Chairman of the Commission for the Development of Institutes of Public-Public Cooperation and Social Partnership in the Far Eastern Federal District was elected Chairman of the OS. The formation of the membership of the Public Council aroused great interest. 139 people wanted to join the formed body, which amounted to more than 4 candidates for one seat. According to the Public Chamber of the Russian Federation, this is the highest competition among public councils of federal ministries and departments.
Fund 87, 16.03.2017
