Source: http://rustrade.org.uk/eng/?p=1239
Timestamp: 2020-08-07 01:34:50
Document Index: 75951098

Matched Legal Cases: ['Art. 284', 'Art.262', 'Art. 259', 'Art. 381', 'Art. 395', 'Art. 224']

Ludinovo – Special Economic Zone area – Trade Delegation of the Russian Federation in the United Kingdom
« GROUP OF COMPANIES «Opticenergo»
Kaluga region SEZ “Lyudinovo” special economic zone area
On December 31, 2012 Russian Prime Minister Dmitry Medvedev signed a decree to establish Lyudinovo industrial special economic zone. Pursuant to a regulation of the government each special economic zone has a special legal status. Thus, its residents enjoy a number of tax and customs benefits and have a guaranteed access to utilities, transport and business infrastructure.
A number of Russian and foreign companies are included in the list of potential Lyudinovo special economic zone residents. Two investment applications were submitted as of September 2012 (Magnat and Farmakom MB). The aggregated amount of investments equals RUR 9.2 billion, 860 new jobs are to be created.
The capacity of the existing water treatment facilities equals 22,000 m³/сутки, current load – 17,000 m³/day (up to 20,000 m³/day in case of rainy weather).
It is planned to ensure power supply to the site from Tula power system through Liteynaya substation (220/110/10 kW). Liteynaya substation installed capacity is 2х200 MW, the current utilization factor – 30% of the installed capacity. Distance to Liteynaya substation – 3.5 km.
LP1 – lease payment under a lease agreement concluded with legal entities registered as Lyudinovo industrial special economic zone residents;
Рmax – maximum amount of lease for land plots, i.e. 2 per cent of their cadastre value per annum;
Ki – coefficient impacting the amount of the lease payment for Lyudinovo special economic zone residents, namely:
for residents making capital investments in Russian rubles in the amount of not less than EUR 10 (ten) million (excluding intangible assets) – 0.9;
for residents making capital investments in Russian rubles in the amount of not less than EUR 20 (twenty) million (excluding intangible assets) – 0.7;
for residents making capital investments in Russian rubles in the amount of not less than EUR 30 (thirty) million (excluding intangible assets) – 0.5.
The following infrastructure facilities are to be built within the framework of Lyudinovo special economic zone creation project:
External (off-site) infrastructure:
water supply line, length – 5 km, dia 300 mm, capacity – 10,000 m3/day, including 3 (three) switching chambers and a flow metering unit;
water discharge network (industrial and domestic effluents), including the sewage collector: length – 5 km, dia 300 mm, capacity -10,000 m3/day, pressure-type, including the pump station, as well as the pump station power supply and construction of 2хTS-160kVA-20/0.4 kW;
medium-pressure gas pipeline, dia 159 mm, length – 2 km, capacity 130 million m3/annum, including a gas distribution station and an access road;
storm water collector, dia 2,000 mm, with two discharges with the length of 1.5 km each, capacity – 20 m3/s;
Internal (on-site) infrastructure:
Ring two-pipe water supply line, dia 300 mm, length – 6 km, 4 (four) switching chambers;
gas supply networks, length – 6 km, dia 159 mm, with installation of section taps and cathodic protection;
storm water collector, dia 2 000 мм, length – 6 km;
on-site roads and passes (Category IV), total length – about 6 km;
on-site railways, total length – about 5 km;
chain link fencing (length – 10,500 m);
Tax rate (incl. tax breaks)
Tax break validity term
1. Corporate income tax(tax component payable to the federal budget – current rate: 2 %; component payable to the regional budget – current rate: 18%)
For special economic zone residents the tax rate component payable to the regional budget may be decreased and cannot be higher than 13.5 %
Determined by the regional law
para.1., Art. 284 of the Tax Code of the Russian Federation
Other benefits to be taken into account when calculating the corporate income tax for the entire duration of the special economic zone existence (49 years).
R&D costs, including costs associated with unsuccessful R&D projects shall be recorded in the reporting (tax) period when they were borne (actual sum of relevant costs).
Additional coefficient is applied to the depreciation rate (not higher than 2) in respect of fixed assets depreciation.
(para.2, Art.262, item3, para.1, Art. 259.3 of the Tax Code of the Russian Federation)
Corporate property tax(tax rates are determined in accordance with the law of the relevant region of the Russian Federation and cannot be higher than 2.2 %)
Special economic zone residents are relieved of the corporate property tax provided that the relevant property:
is included in the special economic zone resident’s balance sheet
manufactured or purchased for production purposes for the special economic zone facility
used in the territory of the special economic zone under the special economic zone establishment agreement
is placed in the territory of the special economic zone
10 years from the date of the relevant property official registration
The benefit validity term may be extended by the law of the region of the Russian Federation
para.17, Art. 381 of the Tax Code of the Russian Federation
(current rate –
1.5 %)
The special economic zone residents are relieved from paying the land tax (in relation to the land plots located in the territory of the special economic zone)
5 years from the date of official registration of a title to the land plot
para.9 Art. 395 of the Tax Code of the Russian Federation
Special economic zones residents may apply customs procedures relieving them from paying customs duties and taxes for the goods placed and used in the territory of the special economic zone.
Additional special economic zone benefits
The personal income tax of foreign nationals belonging to the category of highly-qualified personnel employed by special economic zone residents equals 13% (para. 3, Art. 224 of the tax code of the Russian Federation). The personal income tax rate for foreign nationals who are not tax residents of the Russian Federation is 30%. Individuals who reside in the territory of the Russian Federation for at least 183 days in a year belong to the category of tax residents.
Guarantees against negative changes in tax legislation
Legislation acts on taxation shall not apply to special economic zone residents throughout the validity term of the agreement on industrial and production activities in case they negatively impact the taxpayers, residents of special economic zones (however, this provision does not apply to excise goods manufacturers) (Article 38 of Federal Law On special economic zones in the Russian Federation No. 116 of July 22, 2005)
Social and economic effects of the project implementation for 10 years (2013-2023):
3,900 jobs are to be created;
RUR 33.6 billion of investments are to be attracted;
Total output of Lyudinovo special economic zone enterprises is to be RUR 87 billion;
Tax proceeds to be received by budgets of different levels will be RUR 7.8 billion, including :
· federal budget – RUR 3.9 billion;
· Kaluga Region budget – RUR3.6 billion;
· Lyudinovo and Lyudinovo District municipality budget – RUR0.3 billion.
Representative office of the region of Kaluga at the Federal Government of. Russia
Tel./Fax: +7 499 241 6636. E-mail: p.aldakov@gmail.com
More information at sites: investkaluga.com/en/ and invest.kaluga.ru/en.