Business to get Arctic resident status

Business to get Arctic resident status

August 28, 2020

Applying for obtaining the status of the Arctic zone resident begins from August 28.

The President of Russia signed a package of federal laws on the system of preferences in the Arctic on July 13. It includes the federal law On State Support for Entrepreneurship in the Arctic Zone of the Russian Federation and amendments to the Tax Code. The law comes into force today.

The Ministry for the Development of the Russian Far East, where the draft law was developed, believes that the new legislation should create conditions for attracting private investments to the Arctic zone of Russia in the amount of at least 6.7 trillion rubles until 2030 and creating 28 thousand new jobs.

Legal entities (individual entrepreneurs) registered in the Arctic and planning to implement a new investment project or launch a new type of economic activity with capital investments of at least one million rubles will be able to apply for the status of the Arctic zone resident. In addition, the company should not have tax and levy arrears in the amount of more than 25 percent of the book value of assets, the organization should not be in the stage of bankruptcy, liquidation or reorganization. One can submit documents through the electronic account on the profile investment portal.

As a reminder, residents are provided with a zero rate of income tax credited to the federal budget for ten years after the first profit is received (for all types of activities, except for mining). Also reduced, up to zero percent, rates of taxes on profits, property, land credited to the regional budget, a reduction in rates up to one percent under the simplified tax system are introduced. It is envisaged to reimburse part of the costs of paying insurance contributions to state extra-budgetary funds up to the final rate of 7.6 percent for all types of activities, except for mining.

In addition, a number of administrative procedures will be simplified. Scheduled inspections in respect of residents can only be carried out in the form of joint ones. The annual plan of such inspections is subject to agreement with the Ministry for the Development of the Russian Far East. Unscheduled inspections are possible only by agreement with this department, their period will not exceed five days.

The possibility of applying the customs procedure of a free customs zone in certain areas of seaports, airports, and on land plots of residents has been established. Priority checkpoints across the state border will operate around the clock, they will create a ‘one window’ and set deadlines for customs inspection of goods. State authorities are entitled to provide land plots to residents without bidding.

The laws made it possible to finally form the land borders of the Arctic zone. It included all those territories that, according to experts from the Russian Academy of Sciences, corresponded to the Arctic status. Among the newly included are the settlements of Surinda, Tura, Nidym, Uchami, Tutonchany, Essey, Chirinda, Ekonda, Kislokan, Yukta, Evenkiy municipal district of Krasnoyarsk region.

In addition, the laws provide for measures to develop and protect the traditional economic activities of the indigenous small-numbered peoples of the North. To monitor the interaction between residents and indigenous peoples, as well as to develop measures for environmental protection, a Public Council of the Arctic Zone will be created.

Text: Angelica Stepanova, Photo: future-arktiki.rf

August 28, 2020

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