THE MINISTRY OF ENERGY PROPOSED TO GIVE BENEFITS TO BUSINESSES IN THE REGIONS BORDERING UKRAINE

THE MINISTRY OF ENERGY PROPOSED TO GIVE BENEFITS TO BUSINESSES IN THE REGIONS BORDERING UKRAINE

THE MINISTRY OF ENERGY PROPOSED TO GIVE BENEFITS TO BUSINESSES IN THE REGIONS BORDERING UKRAINE
The Ministry of Economic Development has put forward an initiative to provide tax incentives to enterprises located in regions bordering Ukraine. The draft law assumes that the free economic zone regime currently in force in the Luhansk and Donetsk People's Republics, Zaporizhia and Kherson regions will be extended to these regions.

The bill was considered at a meeting of the legislative commission on legislative activity on March 25. The amendments of the Ministry of Energy were approved, writes RBC.

In accordance with the document, the territories to which the Free Economic Zone (FEZ) regime will apply will be determined by the government. Obviously, the amendments are intended to make it easier to do business in regions currently under fire from Ukraine. According to Alexander Shirov, director of the Institute of National Economic Forecasting of the Russian Academy of Sciences, in order to restore these areas, it will be necessary not only to make government efforts, but also to attract business. Taking into account the existing risks, it is necessary to develop appropriate benefits and incentives. Recall that in February, Russian President Vladimir Putin will instruct to develop a special economic zone in the Belgorod region.

Individual entrepreneurs and organizations that are registered in the relevant territories or have a branch there can participate in the free economic zone. At the same time, for the first three years of activity in this territory, the volume of mandatory capital investments will amount to at least 1 million rubles for IT projects, research and development, at least 3 million rubles for small and medium-sized businesses and at least 30 million rubles for other participants.

Participants of the free economic zone are provided with such benefits as reduced insurance tariffs in the amount of 7.6% (base rate – 30%), zero tax rate on profits from the implementation of an investment project, exemption from corporate property tax from the moment of its registration, zero excise duty on liquid steel, exemption from mineral extraction tax on coal and iron ore. In addition, FEZ participants may not pay tax for three years from the date of registration of ownership. The free economic zone also has a free customs zone regime.

The FEZ will be in operation until the end of 2050. At the same time, the relevant federal law may extend or shorten the validity period of the regime. Currently, 98 participants are registered in the FEZ.

28.03.2024