- What is it?
- Pros investors
- How to start activities in the Crimean FEZ?
- Obtaining resident status
- Preferential taxation
- Income tax
- Property tax
- Land tax
- Insurance payments
Media reports tell us that for a quarter of a century the Crimea and Sevastopol became an “economic paradise” for entrepreneurs. This is due to the introduction of a free economic zone in the Crimea. What economic benefits does it offer to investors and businessmen? What benefits does it mean? These questions we analyze in the material.
What is it?
A special (free) economic zone in Crimea is the introduction of incentives for investors and entrepreneurs in the territory of a given republic. Formed by the Government of the Russian Federation in the desire to help the development of local business. This also contributes to its reorientation from Ukrainian to Russian laws. Benefits and preferences will attract additional investments to the territory of the republic, will contribute to the development of business of new forms and quality.
The FEZ is also some compensation for the risks of the political character associated with Western countries imposing sanctions against Russia. After all, new attractive conditions will attract not only domestic, but also foreign entrepreneurs to the territory of the republic.
The free economic zone in Crimea attracts investors with a number of attractive conditions. Among these benefits and preferences highlight the following:
- The absence of a tax rate on the property of organizations for a 10-year period.
- In the first three years of the organization, the maximum income tax is only 2%.
- In 2015-2016 in the republic there was a simplified taxation system (abbreviation - USN). The rate on it was 0%! Today it has risen to 4% (until 2021).
- A number of benefits in the field of insurance. For a decade, insurance premiums from wages are 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 work of the FEZ in the Crimean Republic are still “raw” because of 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 FEZ?
If you want to develop your business in the free economic zone of Crimea, then first of all you should get acquainted with Federal Law No. 377 (2014) - "On the development of the Crimean Federal District and the FEZ in the 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 a legal entity, which must be registered in the Republic of Crimea for tax purposes. In addition, he should have an investment declaration, which confirms the desire to implement an investment project in the 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 the Crimea (including Sevastopol) and an investment project. To the last one condition - the amount of capital investments in the first three years should not be less than 3 million rubles.
However, there is one exception to the rules: representative offices and branches cannot enter the FEZ, since they are not independent legal entities. by individuals.
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 activity of the entrepreneur or legal. persons carried out in Sevastopol, it is necessary to contact the Legislative Assembly of this city.
- In addition to the application, you need to attach a set of documentation: a copy of the constituent papers for a legal entity, a copy of the certificate that you are on tax records, a copy of the certificate of registration of legal entities. the person or the SP, completed according to a special investment declaration (ID) template.
- It is important to correctly fill out the ID, according to the requirements listed in the Federal Law No. 377. In particular, the following information is indicated: the type of commercial activity, the main objectives of the investment, a detailed feasibility study (number of jobs, average salary, etc.), the amount of investments in the project (listed for the first three years), the schedule for the implementation of capital investments drawn up for the year, the project implementation plan in the territory of the Crimean Republic.
- Waiting for a decision by the executive 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. For all applications there is a 7-day waiting period for a response from the authorities.
- If the amount of capital investments exceeds 100 million rubles, the application is sent for consideration to a special body - the expert council. The waiting time here is the same - 7 days. This function is performed by the relevant authorities of the state in the republic. Within 15 days, the council reviews the application. It may also require 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 participants of the free economic zones in the Crimea and Sevastopol.
- Obtaining the IP or legal entity of a certificate certifying that he is a member of the FEZ. From this point on, a businessman is entitled to carry out his activity in special economic conditions.
The history of the formation of the Free Economic Zone in Crimea (Federal Law No. 377) is associated with the approval of two types of tax benefits. This is the following:
- General benefits for individual entrepreneurs and other organizations operating in Sevastopol and Crimea.
- Benefits for residents of the FEZ.
As for residents, according to the law on a free economic zone in Crimea, the following conditions are introduced for them:
- Reduced corporate income tax rates. For fixed assets, an increased depreciation coefficient is applied.
- Property tax organizations. Over the course of 10 years, it is zero.
- Value Added Tax. In the case when the 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 contributions. Their total size during the first 10 years of activity is 7.6%.
The most interesting fact for the participants of the free economic zone in Crimea is the reduced income tax. This is considered the most tangible benefit in the modern world.
The conditions are simple: from the moment of receiving the first income from their activities, the participants of the FEZ will not deduct 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 power of Sevastopol and Crimea - the legislation secures such a right for it. However, the Federal Law imposes a limit on its maximum size.
Here is how it all looks in numbers:
- In the first three years of their activity, residents pay a 2% income tax to the regional budget.
- Fourth-eighth year of activity - 6%.
- From the ninth year of activity - 13.5%.
Businessmen will always keep certain property on the balance sheet. What benefits does the Federal Law on the Free Economic Zone in Crimea introduce here?
The tax rate for property organizations is zero. However, for this it is necessary to comply with one condition for this property: it must be created, purchased only for carrying out activities within the boundaries of the FEZ. Accordingly, it is located on the territory of the republic.
This tax residents do not pay for 10 years. The term is calculated from the month when the specified property was taken to the account of the organization.
Taxation in the free economic zone of Crimea in this area can also boast of benefits. The land must be 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 granted to the resident from the time when this section will be secured. It must be acquired by the member of the FEZ.
The amount of insurance deductions for the free economic zone has been significantly reduced. As we have 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 privilege is prescribed only for those participants of the free economic zone who signed an agreement to participate in the FEZ no later than a 3-year term from the date of its creation in the 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 for the development of local business, attracting domestic and foreign companies to the republic. It is important to emphasize that each benefit is the observance of special conditions that we have noted.