Kaliningrad SEZ Special Economic Zone

A special economic zone in the Kaliningrad region is the territory of the Kaliningrad region and internal sea waters adjacent to the territory of the Kaliningrad region and the territorial sea of ​ ​ the Russian Federation, within the borders of which there is a special legal regime for the implementation of economic, production, investment and other activities.

• Since 05.01.2018, amendments to the Federal Law of 10.01.2006 No. 16-FZ "On the Special Economic Zone in the Kaliningrad Region and on Amending Certain Legislative Acts of the Russian Federation" have come into force, providing for a special tax regime for organizations engaged in activities in the field of computer software development, as well as activities in the field of information technology (62 and 63 codes of OKVED-2 groups). The volume of planned investments in the amount of 1 million rubles over 3 years allows you to obtain the status of a resident of the Special Economic Zone (hereinafter - SEZ) in the Kaliningrad region and the opportunity to apply a special taxation regime.
• In 2006, the second law on the Kaliningrad SEZ introduced income and property tax benefits for investors who invested at least 150 million rubles in the region's economy. Progressive for the noughties, these conditions lost their attractiveness as similar regimes were created in other subjects. Therefore, having secured the support of the federal leadership, the regional authorities carried out modernization, a kind of upgrade of preferences of the Kaliningrad SEZ, having achieved new advantages for investors.
• The first law on the SEZ of the region was adopted in 1996. Then the benefits established for the Amber Territory for the import of imported raw materials and components, as well as duty-free export of goods produced from them, stimulated the development of partial re-export on the territory of the exclave.

10 factors making the Kaliningrad region one of the most investment attractive territories of modern Russia.

1. From January 1, 2018, the Special Economic Zone regime extends not only to the entire territory of the region, as it was established earlier, but also covers the coastal water area. This condition opens up opportunities for the implementation of new transport and tourism projects.

2. For 14 years - from the previous 2031 to 2045 - the validity period of the SEZ regime has been increased. If an investor becomes a resident in 2018, the legislator guarantees him at least a 27-year period of certainty and invariability of the rules of the game.

3. A minimum fiscal burden is set for SEZ residents. They receive tax preferences for income tax and property tax - 0% during the first 6 years of the project, from 7 to 12 years of the project, 10% income tax, 1.1% - property tax. At the same time, the first six-year period of benefits is counted from the moment of receipt of the first profit on the project. In the event that profit does not appear during the first three tax periods, the countdown will begin from year 4. Thus, the grace period can reach 15 years. The ground zero rate is in effect for the first five years. Many times - from 30 to 7.6% - insurance premiums for new residents of the SEZ have been reduced. This benefit applies only to new jobs and is valid for the investment project for seven years from the date of its inclusion in the register of residents. The deadline for applying reduced tariffs is December 31, 2025. In terms of reducing the fiscal burden, this novella is considered the most breakthrough and attractive condition for residency in the Kaliningrad region.

4. The rules of the free customs zone form the foundation of the economy of the region, separated from the main territory of Russia by the borders of foreign states. For investors in the Kaliningrad region, a zero customs duty is provided for the import of goods, raw materials and components into the region. The import VAT has been zeroed and there is a 180-day deferral of its payment when exporting imported goods to the territory of big "Russia. In addition, there are no quotas for the import of goods, raw materials or components into the territory of the Kaliningrad region.

5. Perhaps the most dramatic changes affected the investment obligations of residents. The regional authorities managed to reduce the minimum investment threshold for SEZ residents of two categories: in the IT sector - only up to one million rubles and for investment projects in the field of health care - up to 10 million. Earlier, we recall that in order to obtain the status of a resident of the SEZ of the Kaliningrad region, it was required to invest in the form of capital investments in a certain period of at least 150 million rubles.

6. Federal legislation approved guarantees of the invariability of business conditions for residents of the SEZ of the Kaliningrad region. They relate, for example, to the rent for a land plot - its rates will be unchanged throughout the term of the lease. There are guarantees of non-use of measures that increase the tax burden of the resident.

7. The cost of ready-made industrial sites for organizing production in the Kaliningrad region is one of the lowest in the country. For example, renting one hectare in a technopark equipped with all the necessary infrastructure is about 189 thousand rubles a year. The purchase price of a land plot in a technopark after commissioning of production will be 2.9 million rubles per hectare.

8. The undisputed advantage of the Kaliningrad region is the well-developed logistics and transport infrastructure. The region has the only ice-free port in the Baltic. Unique opportunities for the development of transit and export projects open up the factor of the presence of railway gauge of two types: wide gauge (country) EEU and narrow gauge (European). The region is crossed by road trans-European transport corridors. For the World Cup in Kaliningrad, the airport was reconstructed, which can now receive aircraft of any type.

9. Another objective factor in the investment attractiveness of the westernmost region of Russia is its geographical location. It is closest to the industrialized countries of Europe - potential markets and sources of investment. Kaliningrad region with low costs, tax incentives, accessible infrastructure of industrial parks is an ideal platform for the production of competitive goods and access to Russian and foreign markets with it.

10. In the Kaliningrad region, the investor receives not only tax breaks, but also a full-fledged concierge service. The regional authorities help entrepreneurs choose an office and industrial sites, find the right specialists. If necessary, the regional government will assist in finding housing for nonresident employees, offer employment options for their family members, registration of children in schools or kindergartens.

History

2023: Half of IT companies have left the SEZ in 6 years

27 out of 59 residents (that is, almost half) from the information technology sector have left the Kaliningrad Special Economic Zone (SEZ) since 2018. Such data in November 2023 were presented on the website of the regional Ministry of Economic Development, Industry and Trade.

As RBC writes with reference to the published materials, the largest number of applications for exclusion from the register of the special economic zone was received in 2022 - then 7 IT companies left it. All companies were removed from the list of their own free will.

27 out of 59 residents of the Kaliningrad SEZ left the zone

It is also reported that in 2018 one company left the SEZ, in 2019 - five, in 2020 - six, and in 2021 - three. In January-November 2023, five firms applied for delisting from the register.

Experts attribute this to a change in the conditions for IT-Business at the federal level. In 2018, companies could enter the SEZ register, investing only a million rubles and receive in return an extensive number of useful benefits - the right to apply a reduced rate on social contributions when creating new jobs and full exemption from taxes on income and property for the first six years.

In 2020, IT companies have the opportunity to switch to reduced social payments at the federal level. According to the federal benefit, the fee was only 7.6%. Also for companies reduced income tax - from 30 to 3%.

By November 2023, the government is considering amendments to the Tax Code, which could significantly change the benefits provided to new SEZ residents in the region. The Federation Council Committee on Budget and Financial Markets opposed the amendments to the tax regulation of the Special Economic Zone, and representatives of the regional business did not support the initiative either.^[1]

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