Special Economic Zone (SEZ) in the Kuril Islands

History

2023: Putin signs law creating SEZ in Kuril Islands

In mid-March 2023, the president Russia Vladimir Putin signed a law Special Economic Zone (SEZ) creating on. Kuril Islands The project will be implemented in the territories of the South Kuril, Kuril and North Kuril urban districts, following the Sakhalin Oblast example. Magadan region

The company registered in the Kuril SEZ will receive the right to exemption from income tax, customs benefits when importing foreign goods (customs clearance will be required only at checkpoints if they are exported to Russia). The term of the SEZ in the Magadan Region is set until December 31, 2025, the SEZ of the Kuril Islands - until December 31, 2046.

SEZ in the Kuril Islands will work until December 2046

For SEZ participants in the Kuril Islands, customs simplifications will operate, which are in the territorial SEZ in Magadan. In particular, the operation of the customs procedure of the free customs zone, benefits and features of declaring goods by a SEZ participant, features of state control and supervision in this zone are regulated. The conditions for exempting SEZ participants from income tax are specified, the procedure for electronic interaction between participants and customs authorities is prescribed.

A special economic zone is being created in the Kuril Islands, a new concept of a participant is being introduced. That is, this is not a resident in the usual sense, that is, the fact that he must receive some kind of permits. Here, in fact, he realizes the right to exemption from income tax, additionally receives benefits for customs clearance of goods and the application of the free customs zone procedure, - explained earlier the director of the customs policy department of the Ministry of Finance Nikita Zolkin.

The Russian authorities explained the need to introduce a preferential regime by the remoteness of the islands from the mainland, the underdevelopment of their infrastructure and difficult climatic conditions - all these factors require large investments to open a business.^[1]

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