Arctic territories

Development of the Arctic territories of the Republic of Karelia

Federal Law of 13.07.2020 No. 193-FZ  "On State Support of Entrepreneurial Activity in the Arctic Zone of the Russian Federation" established a special economic regime in the Arctic.

Federal benefits for residents of the Arctic zone of the Russian Federation

  • Does not apply to projects in the field of mining

Insurance premiums 7,5% (3,75%)

  • For new jobs
  • Does not apply to projects in the field of mining

Mineral extraction tax 0,5% effective rates 

  • For new fields only
  • Valid until December 31, 2032

Tax incentives at the regional level for residents of the Arctic zone of the Russian Federation

Tax name First 5 years Next 5 years
Income tax 0% 5%
Property tax 0% 1,1%
Land tax 0% 0-1,5%
USNO: object "income" 1% 3%
USNO: object "income-expenses" 5% 7%

Administrative preferences for residents of the Arctic zone of the Russian Federation 

  • Protecting the interests of residents of the Arctic zone
  • Conducting inspections only by agreement of the Ministry for the Development of the Russian Far East and within a short period of time
  • Provision of land plots in state or municipal ownership, without bidding
  • Free customs zone procedure for equipped and equipped areas of residents of the Arctic zone
  • Simplification of approval procedures during construction

Operation of checkpoints in the Arctic zone of the Russian Federation

Checkpoints on the state border of the Russian Federation in the Russian Arctic operate according to special regulations
  • When carrying out customs and other types of control, a "one window" mechanism is implemented.
  • The work of state control bodies at the checkpoints of the Arctic zone is carried out around the clock
  • Sanitary-quarantine, veterinary, quarantine phytosanitary control (supervision) of goods and vehicles at state border checkpoints located in the Russian Arctic is carried out by customs authorities
  • Documents required for the implementation of control activities (with the exception of identity documents) can be submitted to the customs authority in electronic form

Free customs zone

A resident of the Russian Arctic has the right to apply the procedure of a free customs zone (FCZ) in his activities. This measure is aimed at entrepreneurs interested in exporting products and using imported equipment.

  • Russian goods are placed and used with a payment of excise tax and without payment of export customs duties
  • A free customs zone can be created on equipped areas of residents of the Arctic zone
  • Foreign goods are placed and used without paying customs duties and VAT

Benefits for residents of the Arctic zone of the Russian Federation

sea

No customs duties and VAT

  • The use of imported components in the assembly plant during the subsequent export of goods

Payment of duties either for individual components or for the whole product   

  • The use of imported components in the assembly plant for the subsequent sale of goods in the territory of the Customs Union 

Criteria for applicants for obtaining the status of a resident of the Arctic zone of the Russian Federation

  • Individual entrepreneur or legal entity
  • Registration on the territory of the Arctic zone of the Russian Federation
  • The minimum amount of capital investments in an investment project must be at least 1,000,000 rubles (excluding VAT) 
  • The investment project or line of business must be new to the applicant at the time of application 
  • Lack of the status of a participant in a regional investment project  

A new project is a project within which, at the time of filing an application, the volume of capital investments made during the implementation of the investment project does not exceed 25% of the total volume of capital investments provided for by the business plan.

  • The applicant should not be in the process of reorganization, liquidation, bankruptcy
  • No arrears in taxes and fees, insurance premiums
Investment portal of the Republic of Karelia