The Kuril Islands
Special Zone - The Kuril Islands
The Kuril Islands of the Russian Federation are a territory with a special regime for doing business, where investors enjoy tax benefits, reduced insurance premiums, and administrative preferences
Residents of the Special Zone of the Kuril Islands are exempt from paying the following taxes for 20 years (but not later than December 31, 2046):
-income tax;
- property tax;
- transport tax;
- land tax.
In addition, for residents of the Special Zone of the Kuril Islands, the amount of insurance premiums has been reduced from 30 to 7.6 %.
The territory of the Kuril Islands is subject to the special economic zone regime of the Magadan Region, which allows the application of the free customs zone procedure. Under the free customs zone regime, foreign goods can be imported without payment of import customs duties and VAT.
The specifics of taxation on the territory of the Kuril Islands are regulated by the Tax Code of the Russian Federation (Article 246.3, Article 357, Clause 1.2 of Article 373, Clause 2 of Article 388, and Article 427).
Participant requirements:
Organizations registered in the South Kuril, Kuril and North Kuril urban districts of the Sakhalin Region after January 01, 2022 can become recipients of tax, insurance and administrative preferences.
The participant must not have separate divisions located outside the Kuril Islands.
The share of the participant's income from passive activities (rent, interest income) does not exceed 10%
- The Participant does not carry out the following activities:
a) intermediary, agency activities
b) trade activities (except for trade in goods of own production)
c) production and (or) processing of excisable goods
d) production and (or) processing of hydrocarbon raw materials
e) catch of valuable crustacean species.
- A participant cannot be a reorganized organization or the owner (or its dependent person) of which owns 50% or more of the share of participation in companies registered before January 1, 2022 in the territory of the Kuril Islands (Article 1.p.1.No. 50-FZ of 09.03.2022 "On Amendments to Part Two of the Tax Code of the Russian Federation"). code of the Russian Federation")
Procedure:
1.Registration of a legal entity in one of the urban districts of the Kuril Islands.
2. Submission of a written notification of the use of the right to exemption no later than 30 calendar days from the date of its state registration to the Federal Tax Service (FTS) of Russia for the Sakhalin Region.