Russian Kuril Islands

Russian Kuril Islands (RKI) is a territory offering special environment for entrepreneurs, where investors enjoy tax concessions, lower insurance instalments and administrative benefits.
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Resident

The RKI regime applies to the entire territory of the Kuril Islands (South Kuril, Kuril and North Kuril Urban District)

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Benefits for RKI residents:

Tax concessions

Lower social security payment

Administrative preferences

Taxation

A taxpayer is granted a tax exemption applicable for some particular taxes and valid for 20 years, up to December 31, 2046.

Corporate Income Tax
0 % for 20 years

Land taxes
0 % for 20 years

Corporate property tax
0 % for 20 years

Transport tax
0 % for 20 years

Deductions for social security payments

Lower rate for social security payments

7,6 % for 20 years

7.6% instead of 30%: reduced rate of payments to social security funds (Pension Fund, Social Security Fund, Mandatory Health Insurance Fund)

Administrative preferences

Application of the free customs zone procedure (foreign goods are imported without payment of customs duties and VAT)

Provision of land plots to participants without bidding

Provision of infrastructure

Assistance in attracting financing

Attraction of foreign labor

One-stop-shop project support

How to become RKI resident:

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

Businesses incorporated in the territory of Yuzhno-Kurilsky, Kurilsky and Severo-Kurilsky Urban District, after January 1, 2022, may be granted a number of benefits in the field of taxation, social security payments and some administrative preferences.

The applicant should have no separate branches or divisions beyond the territory of Kuril Islands.

The share of the applicant's passive income (rent, interest income) does not exceed 10%

The applicant is not engaged in the following types of activities:

  • agent or intermediary;
  • sales (except selling own-produced goods);
  • production and (or) processing of excisable goods;
  • extraction and (or) processing of hydrocarbons;
  • harvesting valuable crustacean species.

An applicant cannot be a reorganized business or a business whose owner’s (or its affiliated entity) share in the companies registered before January 1, 2022 in the Kuril Islands, exceeds 50% (Article 1, item 1 of the Federal Law “On amendments to Part 2 of the Tax Code of the Russian Federation”, No 50-FZ, dated 09.03.2022)

2 Procedure

2.1. Registration of a legal entity on the territory of one of the urban districts of the Kuril Islands;

2.2. Send a written notification of the use of the right to exemption to the tax authority at the location of the participant no later than 30 calendar days from the date of its state registration to the Federal Tax Service of Russia for Sakhalin Oblast (Yuzhno-Sakhalinsk, 14 Karla Marksa St.; tel. +7 (4242) 740-200, or to its separate subdivisions:

  • Kurilsk, Okhotskaya St., 5A; tel. +7 (42435) 9-01-09;
  • Severo-Kurilsk, Shutova St., 19; tel.: +7 (42453) 2-17-31;
  • Yuzhno-Kurilsk, Ilyichev quater, 1a; tel.: +7 (42455) 2-17-15.

"Sakhalin and the Kurils FEDC" LLC

Floor 1, 36 Antona Buyukly Street, Yuzhno-Sakhalinsk, Sakhalin Region
Maria Grishinkova
Director

Frequently asked question about RKI

What are the support measures intended for?
The support measures are intended to promote entrepreneurial activities in the territory of Kuril Islands (new jobs, higher amounts of basic capital investments).
© Russian Far East and Arctic Development Corporation, 2024