In accordance with Decree of the Government of the Russian Federation No. 432, dated April 30, 2015 , the Russian Far East Development Corporation performs the functions of managing the Advanced Special Economic Zones and the Free Port Vladivostok in the constituent entities of the Far Eastern Federal District. Subsidiaries and representative offices of the FEDC have now been established in the regions of the Far Eastern Federal District. The Corporation intends to expand the list of services rendered to investors, and to develop and introduce new mechanisms to support business in the Russian Far East.
The sole shareholder of the FEDC is the Russian Federation, represented by the Ministry of the Russian Federation for the Development of the Far East.
To be involved at a practical level in the creation of comfortable conditions for doing business in the Far East, to assist the Far East region in realizing its competitive advantages, to create new business areas in the territories where it operates, which will have the potential to occupy a leading position in the wider Asia-Pacific region.
The Russian Far East Development Corporation was created in order to create favorable financial and administrative conditions for the establishment and development of businesses in the region. The goals of the Corporation also include the creation of new jobs, promoting population growth, developing production and services with high added value, and increasing the budgetary revenues of the Far East regions and the profits of commercial companies.
To achieve its goals, the Russian Far East Development Corporation performs a wide range of objectives related to the creation of the infrastructure needed to do business in ASEZs, the creation of high-tech science-intensive industries within ASEZs and the FPV, and providing a Help desk support service for investors.
As part of its comprehensive support for ASEZ and FPV investors, the Russian Far East Development Corporation leases land plots to residents and helps to solve a wide range of administrative problems. The FEDC also has the right to defend and represent the interests of the AZRF and FPV residents who have applied to it in court.
An advanced special economic zone (ASEZ) is a part of the territory of a constituent entity of the Russian Federation, where a special legal regime has been established for the performance of entrepreneurial activities.
In total, 20 ASEZs have been created in the Far East.
Tax privileges:
• Income tax - 0% for the first 5 years, 12% for the following 5 years (the preferential rate in respect of the regional component of the tax is established by the constituent entity of the Russian Federation)
• Land tax - 0% for the first 3 years (the preferential rate is established by the municipality)
• Property tax 0% for the first 5 years, no more than 2.2% for the next 5 years (the preferential rate in respect of the regional component of the tax is established by the constituent entity of the Russian Federation)
• The Unified Social Tax: insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund, the Federal Compulsory Medical Insurance Fund have been reduced from 30% to 7.6%
Administrative preferences:
• Exemption from quotas when engaging foreign employees
(the share is set by the ASEZ supervisory board)
• Reduced timeframes for control checks
• Ready-to-use infrastructure
• Provision of a land plot for project implementation
• Help desk service for investors
• Possibility of applying the free customs zone (FCZ) procedure
• Right of the management company to defend the resident in court
The Free Port Vladivostok (FPV) is a territory in which special customs, tax and administrative regimes apply.
The FBV covers 5 regions and 22 municipalities in the Far East
Tax privileges:
• Income tax - 0% for the first 5 years, 12% for the following 5 years (the preferential rate in respect of the regional component of the tax is established by the constituent entity of the Russian Federation)
• Land tax - 0% for the first 3 years (the preferential rate is established by the municipality)
• Property tax - 0% for the first 5 years, no more than 2.2% for the next 5 years (the preferential rate in respect of the regional component of the tax is established by the constituent entity of the Russian Federation)
• The Unified Social Tax: insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund, the Federal Compulsory Medical Insurance Fund have been reduced from 30% to 7.6%
Administrative preferences:
• Exemption from quotas when engaging foreign employees
• Reduced timeframes for control checks
• The possibility of leasing a land plot without a bidding process
• Help desk service for investors
• Possibility of applying the free customs zone (FCZ) procedure
• Right of the management company to defend the resident in court
