The media tell us that Crimea and Sevastopol have become an "economic paradise" for entrepreneurs for a quarter of a century. This is due to the introduction of a free economic zone in the Crimea. What economic benefits does it promise investors and businessmen? What benefits does it imply? We will analyze these questions in the material.
What is this?
The special (free) economic zone in Crimea is the introduction of benefits for investors and entrepreneurs in the territory of this republic. Formed by the Government of the Russian Federation in the desire to help develop local businesses. This also contributes to its reorientation from Ukrainian to Russian laws. Benefits and preferences will attract additional investments to the territory of the republic, contribute to the development of business of new forms and quality.
FEZ is also some kind of compensation for political risks associated with the imposition of sanctions against Russia by Western countries. After all, new attractive conditions will attract not only domestic, but also foreign entrepreneurs to the territory of the republic.
Pros of investors
The free economic zone in Crimea attracts investors with a number of attractive conditions. Among these benefits and preferences, we highlight the following:
- No corporate property tax rate for 10 years.
- In the first three years of the organization's operation, the maximum income tax rate is only 2%.
- In 2015-2016 the republic had a simplified taxation system (abbreviation - USN). The rate on it was 0%! Today it has increased to 4% (until 2021).
- A number of benefits in the field of insurance contributions. For a decade, insurance contributions from wages have been deducted at a rate of 7.6%.
All these conditions are provided for both Russian and foreign companies and entrepreneurs. But it is worth noting that the mechanisms of operation of the SEZ in the Crimean Republic are still "raw" due to their novelty. Therefore, it is possible that additional legal and regulatory acts will be adopted to optimize them.
How to start activities in the Crimean SEZ?
If you want to develop your business in the free economic zone of Crimea, then first of all you should get acquainted with the Federal Law No. 377 (2014) - "On the development of the Crimean Federal District and the FEZ on the territory of Crimea and Sevastopol".
If a businessman decides to become a member of the FEZ here, he must have a certificate of a registered individual entrepreneur or legal entity, which must be registered with the tax authorities in the RepublicCrimea. Additionally, he must have an investment declaration, which confirms the desire to implement an investment project in Crimea.
Russian legislation does not impose any restrictions on the organizational form of legal entities and individual entrepreneurs wishing to join the participants of the FEZ.
In fact, there are only two conditions for entering the Crimean FEZ: registration of an individual entrepreneur or legal entity in Crimea (including Sevastopol) and an investment project. There is one condition to the last - the amount of capital investments in the first three years should not be lower than 3 million rubles.
However, there is one exception to the rule: representative offices and branches cannot enter the FEZ, since they are not independent legal entities. faces.
Obtaining resident status
To become a resident of the free economic zone in the Republic of Crimea, it is enough to follow this algorithm:
- Register an individual entrepreneur, enterprise or legal entity in one of the settlements of the Crimean Republic.
- Register with the tax office.
- Submit a written application to the Republican Council of Ministers to conclude a document on the conditions of activity in the zone. If the activities of an entrepreneur or legal persons carried out in Sevastopol, you must apply to the Legislative Assembly of this city.
- In addition to the application, you need to attach a set of documentation: copies of the constituent papers for a legal entity, a copy of the certificate stating that you are tax registered, a copylegal registration certificates person or individual entrepreneur, an investment declaration (ID) filled out according to a special template.
- It is important to fill in the ID correctly, according to the requirements listed in Federal Law No. 377. In particular, the following information is indicated: the type of commercial activity, the main objectives of the investment detailed feasibility study (number of jobs, average salary, etc.), the volume of investments under the project (listed for the first three years), the schedule for the implementation of capital investments, drawn up for a year, a plan for the implementation of the project on the territory of the Crimean Republic.
- Waiting for a decision by the executive state authorities. An important aspect: if the amount of capital investments does not exceed 100 million rubles, then the case is considered by the highest executive body of Crimea or Sevastopol. All applications have a 7-day waiting period for a response from the authorities.
- If the amount of capital investments exceeds 100 million rubles, then the application is sent for consideration to a special body - the expert council. The waiting period here is the same - 7 days. This function is performed by the corresponding instances of state power in the republic. Within 15 days, the council analyzes the application. He may also order the applicant to make the necessary changes to the declaration.
- Conclusion of an agreement on the conditions of activity in the FEZ. Inclusion of the applicant in the list of participants in free economic zones in Crimea and Sevastopol.
- Receipt by an individual entrepreneur or a legal entity of a certificate certifying that he is a member of the FEZ. From this moment on, the businessman has the right to carry out his activities inspecial economic conditions.
Preferential taxation
The history of the formation of the Free Economic Zone in Crimea (FZ No. 377) is connected with the approval of two types of tax benefits. This is the following:
- General benefits for individual entrepreneurs and other organizations operating in the territory of Sevastopol and Crimea.
- Benefits for FEZ residents.
As for residents, according to the law on the free economic zone in Crimea, the following conditions are introduced for them:
- Reduced income tax rates for businesses. An increased depreciation rate is applied to fixed assets.
- Corporate property tax. For 10 years it is zero.
- Value added tax. In the event that goods undergo customs procedures within the free customs zone, preferential taxation is introduced for residents.
- Land tax. During the first 3 years of activity, residents do not pay it.
- Significant reduction in insurance premiums. Their total size during the first 10 years of activity is 7.6%.
Income tax
The most interesting fact for participants of the free economic zone in Crimea is the reduced income tax. It is considered the most tangible perk in the world today.
The conditions are simple: from the moment you receive your first income from yourFEZ participants will not pay taxes to the federal budget for 10 years.
But for those taxes that go to the regional budget, there is a reduced tax rate. What is its size? It is already established directly by the state authorities of Sevastopol and Crimea - the legislation secures such a right for it. However, the Federal Law imposes a limit on its maximum size.
Here's how all of the above looks in numbers:
- For the first three years of their activity, residents pay 2% income tax to the regional budget.
- Fourth-eighth year of operation - 6%.
- From the ninth year of operation - 13.5%.
Property tax
Businessmen will always have certain assets on their balance sheets. What benefits does the Federal Law on the Free Economic Zone in Crimea introduce here?
The tax rate for corporate property is zero. However, for this it is necessary to observe one condition for this property: it must be created, bought only for the implementation of activities within the boundaries of the FEZ. Accordingly, it is located on the territory of the republic.
Residents do not pay this tax for 10 years. The term is counted from the month when the specified property was accepted into the account of the organization.
Land tax
Taxation in the free economic zone of Crimea in this area can also "boast" of benefits. The land must bebe located on the territory of Sevastopol or Crimea, and its purpose is to comply with the business objectives specified in the contract.
The tax benefit is provided to a resident from the moment when this site is assigned to him. It must be acquired by the participant of the SEZ.
Insurance payments
The amount of insurance premiums for the SEZ has been significantly reduced. As we have already said, this is 7.6%. This level will be maintained for the 10th anniversary.
But it is important to keep in mind one condition: the benefit is prescribed only for those participants in the free economic zone who signed an agreement on participation in the free economic zone no later than 3 years from the date of its creation in Crimea.
What is a free economic zone in the Crimean Republic? These are significant benefits for businessmen and investors. The FEZ was introduced in Crimea to develop local businesses and attract domestic and foreign companies to the republic. It is important to highlight that the receipt of each benefit is the observance of the special conditions that we have noted.
