Russian President Vladimir Putin instructed to adopt amendments regarding the preferential regime for doing business in the Kuril Islands until August 1, 2022. This was announced on Monday, October 18, on the Kremlin’s website.
“Ensure the introduction of amendments to the legislation of the Russian Federation, providing for the implementation of activities by new organizations created on the Kuril Islands, with the application of the following special conditions”, – says in list of orders following the plenary session of the Eastern Economic Forum, held on September 3.
Among the conditions: organizations are not recognized as taxpayers of corporate income tax, land and transport taxes, corporate property tax, reduced insurance premium rates of 7.6% are applied for 10 years, and a free customs zone regime is applied.
The Prime Minister of the Russian Federation Mikhail Mishustin and the Governor of the Sakhalin Region Valery Limarenko were appointed responsible for the execution of the order.
In addition, Putin instructed to consider the issue of organizing regular transit freight traffic along the Northern Sea Route from 2022.
“The Government of the Russian Federation, together with the State Atomic Energy Corporation Rosatom, shall consider the issue of organizing, starting from 2022, regular transit cargo, including container, transportation along the Northern Sea Route, drawing attention to the development of port infrastructure, ensuring the safety of navigation and economic efficiency of transportation, as well as the need to ensure such transportation throughout the year, ”- says the list of instructions.
The Russian leader also instructed to consider the extension of the Far Eastern mortgage to doctors and teachers who have worked in the Far Eastern Federal District for at least five years, and to prepare proposals to abolish VAT on the repair of fishing vessels.
On September 3, Putin announced at the plenary session of the Eastern Economic Forum (EEF) that an unprecedented tax regime for business would be created in the Kuril Islands. Entrepreneurs will be exempted from paying key taxes on profits, property, as well as from paying land and transport taxes for 10 years. In addition, Japanese investors will be able to take advantage of preferential terms in the Kuril Islands.
The next day, the head of the Ministry for the Development of the Russian Far East, Aleksey Chekunkov, explained that the preferential tax regime in the Kuril Islands could be launched by the end of this year.