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Photos: Lida Vetkhova

Crimean FEZ attracted 63 new residents in 2020, - Kiviko

For the last ten months of 2020, sixty three entrepreneurs and legal persons became participants of the Crimean free economic zone (FEZ). The general volume of claimed investments for their projects amounts to more than 2,4 billion of roubles.

In 2020, sixty three contracts were concluded between representatives of the Crimean FEZ and new residents. We are waiting for new participants till the end of the year. Amendments made in the Russian Tax Code allowed participants of the Crimean FEZ to apply reduced tariffs of insurance contributions to 7,6 % what even more increased the attractiveness for investors. This preference is in great demand among participants of the FEZ, as it lets them reduce payments coming to the Labour Compensation Fund four times and allocate savings to the development of their firms and raise wages of the hired personnel. It’s very important that the deadline of applying tariffs of insurance contributions is set until the end of the operation of the free economic zone and notably it’s until 31 December 2039,

— Deputy Chairman of the Council of Ministers Minister of Finance of the Republic of Crimea Irina Kiviko noticed.

The Deputy Prime Minister resembled about major preferences for participants of the Crimean FEZ. In the first turn, the point of the preferences is that the representatives of the Crimean business companies must have desires and possibilities to develop production capacities. Joining the Crimean FEZ, investors obtain tax benefits, what allows them to expand their manufacture facilities and increase the number of jobs.

Among the priority preferences of the FEZ, we have to mention reduced income tax rates of companies. For example, enterprises have to transfer 0 % for 10 years to the federal budget and 6 % (for a number of economic sectors) and 13,5 % to the Crimean budget. On top of all, participants of the FEZ will be exempted from corporate property taxes, land taxes and accelerated depreciation of major internal funds.

Herewith, the possible preferential margin is limited by the level of capital investments multiplied by the coefficient, whose size is set by the Government of the Russian Federation depending on the sector of the economic activity participants of the FEZ are engaged in. The maximum coefficient is three-fold one. For instance, such a coefficient was suggested to be set for the agricultural sector and sanatorium-resort field.

Reference: KIA