About the Arctic zone of the Russian Federation

Chukotka Autonomous District

Republic of Sakha (Yakutia)

Krasnoyarsk Territory

Yamalo-Nenets Autonomous District

Komi Republic

Nenets Autonomous District

Arkhangelsk Region

Republic of Karelia

Murmansk Region

Benefits for AZRF residents

Tax concessions

Regional and municipal tax concessions are applied individually for each of the AZRF member regions.

Administrative privileges

All AZRF residents have preferences to enable implementation of their projects.

Tax concessions

Regional and municipal tax concessions are applied individually for each of the AZRF member regions.

Income tax

for 10 years (federal part)

Applicable from the date when the first profit was earned.

Not applicable to projects in the field of solid minerals extraction.

Concessions for the regional part of the tax are determined by territorial entities of the Russian Federation.

Land taxes

during the first 3-5 years*

*Except Nenets Autonomous District and Krasnoyarsk Territory

Corporate Property Tax (CPT)

0-1.1%

during the first 5 years*

*Except Nenets Autonomous District and Krasnoyarsk Territory

Consolidated Social tax (CST)

75%

is the subsidized amount of social security payments

Applicable only for new jobs

Not applicable to the mining projects

Mineral Extraction Tax (MET)

0,5%

of the current tax rate

Applicable to solid minerals extraction. For new deposits only. The amount of the tax concession may not exceed the amount of private investment in infrastructure, minerals dressing or processing.

Validity: December 31, 2032.

Tax concessions by region

Murmansk Region

Arkhangelsk Region

Republic of Karelia

Komi Republic

Nenets Autonomous District

Yamalo-Nenets Autonomous District

Krasnoyarsk Territory

Republic of Sakha (Yakutia)

Chukotka Autonomous District

Administrative privileges

All AZRF residents have preferences to enable implementation of their projects.

- Residents can apply the Free Customs Zone (FCZ) procedure at their equipped and developed land plots. Foreign goods can be imported and used without paying customs duties and VAT. Domestic goods are purchased and used with the excise duties paid and without paying export customs duties.

- Residents are granted the land plots from the state or municipal property, without any tender.

- Any audit of the resident’s operations is only possible upon the permission from the Ministry for the Development of the Russian Far East and Arctic and within the limited period of time

- Environmental expert review and government expert review of design and estimate documentation can be done simultaneously

- Court representation for the residents (Management Company is entitled to represent and protect the interests of the AZRF residents in court)

- Special regulations applicable for the checkpoints at the state border of the Russian Federation within the territory of the Russian Arctic Zone

- Support in fund raising

- Marketing support and cooperation for the residents

- Investor Personal Account: an information system for interaction between the investment project initiators, the Ministry for the Development of the Russian Far East and Arctic and other institutions for the development of the Russian Arctic. The system is designed as a simple storage for project documentation, rapid receipt of responses and timely detection of emerging problems.

-Subsidies for infrastructure development: federal subsidies for capital investments in infrastructure facilities. Target audience: initiators of new investment projects in the Arctic zone of the Russian Federation, with the investments exceeding 300 million rubles. The state support for the infrastructure projects is provided under the condition of the return on governmental investments through the taxes paid in future periods within 10 years

- HR-support

The amount of subsidies may not exceed 10-20%* of the total amount of investments for the project

*maximum rate of 20% may be applied for: economic activities belonging to the following types, based on RNCE: subclasses 01.1 - 01.5 of class 01 "Crop production and animal husbandry, hunting and provision of relevant services in these areas", subclass 03.2 of class 03 "Fishing and fish farming", subclasses 55.1 - 55.3 and 55.9 of Class 55 "Activities for the provision of temporary accommodation", subclass 90.0 of class 90 "Creative activities, activities in the field of art and entertainment", subclass 91.0 of class 91 "Activities of libraries, archives, museums and other cultural objects", subclasses 93.1 - 93.2 Class 93 "Activities in the field of sports, recreation and entertainment"

maximum rate of 10% may be applied for: other types of economic activity

How to become AZRF resident

1Requirements to an applicant seeking to have the status of AZRF resident

Commercial companies and individual entrepreneurs with the registration in the territory of the Arctic Zone of the Russian Federation can apply for the status of AZRF resident.
The minimum amount of capital investments in the investment project should be at least one million rubles (excl. VAT).
The investment project or area of activity should be new for the Applicant for the date of filing an Application.
A new project is a project where, for the date of application, the amount of capital investments is at least 25% of the total amount of investments scheduled according to the business plan (excluding the costs for extraction licenses) (if any)
For the date of application, the Applicant should not be under reorganization, liquidation or bankruptcy.
The Applicant should not have any debts on taxes and fees, social security payments to the state extra-budgetary funds of the Russian Federation, as well as debts on other mandatory payments to the budgetary system of the Russian Federation for the preceding calendar year, with the value exceeding 25% of the book value of the Applicant's assets

2Prepare a package of documentation

1. Application

2. Copies of incorporation documents (for legal entities)

3. Business plan

4. Investment project schedule

5. Tax registration certificate

6. Tax clearance certificate

7. The applicant's financial reports for the preceding 3 years

or for the period of operations (if this period is shorter than 3 years)

8. Staff list

9. Tax revenues as a result of the investment project (see template)

10.

3Submission of the Application

Prepared documents may be submitted electronically via the Investor’s Personal Account. Submit the documents through the Personal Account.

4Signing the Agreement and entering the Applicant in the List of AZRF residents

The procedure of AZRF residents registration is as simple as possible and subject to special rules, which is for the convenience of the potential investor: it takes up to 37 days

The period for reviewing the application is 10 business days from the date of application;
The Managing Company shall notify the applicant upon the results of the application review;
The Managing Company sends the applicant a draft agreement on investment activities;
The applicant signs the agreement and sends the document back to the Managing Company;
The Managing Company signs the agreement on its part;

Arctic Zone of the Russian Federation

Arctic Zone of the Russian Federation includes 9 regions

What is AZRF?

Benefits for AZRF residents

Tax concessions

Administrative privileges

Tax concessions

Tax concessions by region

Administrative privileges

How to become AZRF resident

Frequently asked questions about AZRF