Special economic zones

Special Economic Zone (SEZ) is a territory vested by the government with a special legal status and economic benefits to encourage Russian and foreign investors to invest in the country’s top priority industries. Russia has been consistently developing such territories since 2005. In 2006–2012, Russian SEZs attracted over 326 investors from 21 countries, including such multinational majors as Yokohama, Itochu, Air Liquide, Bekaert, Rockwool, Novartis, Nokia Siemens Networks, and Arkray.

SEZ offers a special regime for businesses. Investors are provided with government-financed infrastructure required for their business growth, substantial customs privileges, and tax preferences.

In January 2006, the Government of Russia and the Government of Saint Petersburg signed an agreement on building a Technology and Innovation SEZ in Saint Petersburg. It aims at developing high-tech industries, produce innovative products, commercialise achievements of science-intensive sectors, and improve the competitive edge of the region’s economy. The SEZ life cycle is 49 years. The SEZ is located on two sites: Neudorf and Novo-Orlovskaya.

As at 1 January 2016, the SEZ had 36 residents.

Of 36 residents: 12 residents conduct their operations at the Neudorf site, and 24 residents – at the Novo-Orlovskaya site.

PRIORITY AREAS AND SEZ RESIDENTS

  • Information technologies and telecommunications – 5 residents;
  • Medical technologies and pharmaceuticals – 2 residents;
  • Energy efficiency – 7 residents;
  • Precision instruments production – 12 residents.

As at 1 January 2016, SEZ resident investments exceeded RUB 15.3 billion with 1,643 new jobs created. SEZ residents have paid over RUB 4.6 billion of taxes to Russian budgets of all levels and non-budgetary funds.

The SEZ’s social, transport, and engineering facilities are financed under an intergovernmental agreement from regional and federal budgets on a parity basis (as at 1 January 2016, the total planned government investments exceeded RUB 22 billion, with RUB 4.59 billion of federal budget funds and RUB 10.2 billion of regional budget spent).

TAX PREFERENCES FOR SEZ RESIDENTS

Taxes and fees       General conditions (in Russia, Saint Petersburg)       Terms for SEZ residents       Duration
Income tax  

20%

  15%   until 18 January 2026
Property tax   up to 2.2%   0%   5 years after
the registration date 

Transport tax

  Depending on the engine volume and category of vehicle (RUB 2.5–200/hp)   0% (other than air and water vehicles)   5 years after the vehicle is
registered by an entity
Land tax   up to 1.5%   0%   5 years after acquiring ownership of the land plot

Insurance fees

  34%  

14%

21%

28%

 

2011 - 2017

2018

2019