If the state economy of the state leaves much to be desired and is absolutely unattractive to foreign investors, then one of the ways out of this situation is special zones organized in the country. Within these individual territories, a completely different industrial, investment, fiscal and tariff policy is possible.
What are the special economic zones of Russia? Why are they created? Why are such places attractive for investors and what are the benefits for the state? We will try to answer these and other questions as part of this article.
Special Zones
The best practices for creating such territories undoubtedly belong to European countries. Nevertheless, Russia also has quite serious potential in this area. To date, more than two dozen SEZs are registered in the country. The main special economic zones of Russia can be divided into several types:
- industrial;
- tourist;
- logistic;
- technological.
A little later we will talk in more detail about the types of SEZ. Now let's talk about their location. The special economic zones of Russia include territories in Karachay-Cherkessia, Adygea, Kabardino-Balkaria, and Dagestan. This also includes the Kaliningrad region. The newly created include the Crimean peninsula.
Basic concepts
There is a rather confusing terminology in this area. Let's figure it out a bit. Surely you have heard the following expressions more than once:
- special economic zone;
- free economic territory;
- free trade area ;
- special economic zone.
How do you figure out what they all mean? There is nothing complicated here. All of the above are different names for one phenomenon. An exception here may be perhaps a free trade zone. This concept also means free territory, but much smaller. Usually a free trade zone is a physically isolated territory in sea or air ports, where customs duty is completely absent. A classic example is Duty Free.
Goals and conditions for the creation of the SEZ
The special economic zones of Russia are entire territories (regions, regions, republics) that have special legal status. They have their own preferential economic conditions. As a rule, they are extremely beneficial for domestic or foreign investors. All legal entities conducting business in the territory of the SEZ are referred to as its residents.
To create a SEZ, you must have some conditions:
- good geographical location;
- availability of free space for development;
- developed infrastructure;
- attraction of human resources with sufficient qualifications;
- the possibility of developing interregional and international relations;
- the existence of historical activities.
Why special zones
All special economic zones of Russia are called upon to solve strategic tasks. The creation of such territories contributes to both the development of the country as a whole and the improvement of life in its individual regions. With the organization of SEZs, the state solves such problems:
- creation of a large number of new jobs for citizens with sufficient qualifications;
- attraction of foreign capital to the country;
- stimulation of domestic producers to invest in advanced technologies, production, infrastructure;
- retention of intellectual potential in the country;
- development and support of a domestic manufacturer.
Residents involved in the development of special economic zones also have their advantages:
- use preferential taxation to reduce administrative and production costs;
- saving on various duties, rental rates and other payments, create a more competitive product;
- have the opportunity to attract qualified personnel;
- increase their revenue by minimizing their own costs.
In addition, the state most often carries out the construction of infrastructure in the SEZ at its own expense. It also reduces the burden on residents.
What is the essence of the SEZ?
As you already understood, all the special economic zones of Russia (their list is quite large) help to develop or develop new territories and branches of business. A special regime is created for entrepreneurs in order to enable them to quickly reconfigure their business to new conditions. A classic example is Crimea. This is a completely new territory, the whole business on which has long been adapted to the laws of Ukraine. Now, entrepreneurs need time and benefits to reorient it. Therefore, the state reduces taxes, simplifies the system of customs duties, adapts the insurance system and simplifies registration. The same thing is happening in other regions.
Privileges
For residents of the SEZ, there are preferential economic conditions. For example, such:
- trade privileges - no duties on imported raw materials or spare parts, if they are needed for the production of the final product, and not for resale;
- investment benefits and tax reliefs - reduced tax rates or their complete absence, reduction of currency control;
- insignificant restrictions or their complete absence on ownership of production assets for foreigners;
- simplified standards for workplace equipment, wages, security issues and so on;
- affordable buildings and land plots - an opportunity to equip warehouses and production facilities with the minimum rental price;
- affordable and affordable services and infrastructure - subsidies for utilities, cheap gas, water, electricity, repaired roads, provision of transport services;
- reduced standards of environmental pollution, its protection;
- the presence of a large number of cheap labor, the absence of trade unions and other organizations of workers;
- open access to sales markets - both internal and external;
- long-term absence of income tax;
- conducting customs procedures directly on the territory of the enterprise or expedited obtaining permits, etc.
Types of special economic zones
As we have already said, all zones with special economic conditions can be conditionally divided into the following types:
- industrial-production - are huge complexes focused on the production of a large number of a certain group of goods;
- free trade zones - territories that do not fall under the jurisdiction of the customs service; in such areas not only the sale of products is carried out, but also their storage, testing, packaging and so on;
- tourist - territories with a developing tourism sector in which there are special conditions for entrepreneurs;
- service - territories in which export-import and financial activities are carried out under special conditions; a classic example is offshore zones;
- scientific, technical, implementation - technology parks, areas where, under special conditions, development and research are carried out in a particular area of management.
"Alabuga"
Now let's dwell a little more on some of the SEZs of Russia. Let's start with the SEZ PPT Alabuga. This industrial-production zone is located in the Republic of Tatarstan, near the city of Elabuga, only 25 km from Naberezhnye Chelny.
The specialization here is quite diverse:
- production of buses and automotive components;
- manufacturing of household appliances;
- pharmaceutical manufacturing ;
- furniture manufacturing;
- high-tech chemical production;
- aviation construction.
42 residents are registered in this territory, and more than 4.5 thousand people are employed. The area of the zone is 20 square kilometers.
In order to become a resident of this complex, you need:
- register your company in the territory of the Elabuga municipality;
- Sign an agreement with the management of the SEZ, committing themselves to make investments in their funds of at least 1 million euros for the first year and total investments for the entire period of the contract - at least 10 million euros.
Entrepreneurs who become residents of the Alabuga economic zone can rely on such preferences:
- a free customs zone in which foreign equipment can be placed without paying VAT and customs duty;
- lack of export duty for export of manufactured products;
- full exemption from transport, land tax and other payments to the budget of the republic;
- the income tax rate in the first five years is only 2%, the second five-year period - 7%, then, up to 2055 - 15.5%;
- land plots at a very reasonable price, free access to utilities, brought to the borders of the plot electricity, gas, heat, sewage;
- exemption from property tax and other preferences.
SEZ "Dubna"
This is a technology-innovative zone created in 2005 on the basis of Decree of the Government of the Russian Federation No. 781.
The territory of the SEZ “Dubna” has an area of about 200 hectares and is divided into three sections:
- town of programmers;
- nanotechnology platform;
- site of nuclear physics technology.
The priority areas of this SEZ are:
- design of complex technical systems;
- biotechnology;
- sophisticated medical technology;
- Information Technology;
- composite materials ;
- nuclear physics and nanotechnology.
Residents of this zone can become both individual entrepreneurs and commercial organizations. The exception is only unitary enterprises and foreign firms. To become a resident of the SEZ “Dubna”, you need to register an enterprise on the territory of the municipality and conclude an agreement on implementation activities with the governing bodies.
Residents of this special economic zone can also count on privileged conditions in the field of taxation and other types of support. Tax incentives may be:
- lack of VAT when exporting goods abroad;
- zero income tax rate credited to the federal budget until 01/01/2018;
- 13.5% - income tax payable to the local budget;
- 14% - payments to extrabudgetary funds;
- 0% - the rate of land tax for a period of 5 years, property tax - for 10 years, transport tax - for 5 years.
Residents are also entitled to other preferences:
- preferential rent of premises and land;
- free connection to utilities and communications;
- accelerated paperwork for land;
- free customs zone;
- high speed data transmission systems.
Residents are also offered the conditions of a free customs zone under which the import duty on foreign goods and VAT are not paid when exporting Russian goods.
Altai Valley
SEZ TRT "Altai Valley" is a tourist and recreational area. It was created in February 2007 on the basis of Decree of the Government of the Russian Federation No. 67. The privileged provision is provided for 49 years.
This zone is located 12 km from the city of Gorno-Altaysk, the center of the Altai Republic. About 2.5 thousand people are provided with new jobs. The territory offers unique opportunities for its residents. Cooperation is based on the principles of public and private partnership. This means that the creation of all the necessary infrastructure is financed from budgetary funds, and the creation of tourist facilities is the share of private investment.
The state guarantees significant administrative advantages:
- non-interference in the implementation of investment projects;
- simplified verification format;
- single window mode;
- registration of leases for land with regulated legal status.
Investors are also waiting for tax benefits:
- 0% - property tax rate, as well as land tax for 5 years;
- rent for land - no more than 2% of their cadastral value;
- reduction of the transport tax rate;
- Profit tax reduction to 15.5%.
Turquoise Katun
SEZ TRT "Turquoise Katun" - another recreational and tourist area. It has the largest area among all existing ones - 3326 hectares. Turquoise Katun is positioned as the first and largest zone of natural and extreme mountain tourism, divided into two parts. The first is for youth. There are centers of skiers, climbers, rafters, trackers, a youth hotel and other adapted infrastructure. The second is for wealthy tourists. There are comfortable and expensive hotels and other amenities.
This economic zone, in fact, is just beginning to develop, but already has a significant number of investors willing to invest on attractive terms. After all, residents here are also offered benefits and preferences.
"Titanium Valley"
SEZ "Titanium Valley", created in the Sverdlovsk region, is also quite unique. The direction of the SEZ is titanium industry, exclusive in the territory of the Russian Federation. It provides significant benefits to enterprises focused on the production and high-tech processing of world-class products. The priority industries here are titanium processing and production of products from it, manufacturing of equipment for metallurgical complexes and mechanical engineering, production of building materials.
Ulyanovsk
SEZ PT “Ulyanovsk” is also focused on machine and instrument engineering. Here in honor such activities:
- instrument making, electronics manufacturing;
- aircraft industry;
- aircraft maintenance;
- production of electrical equipment;
- manufacturing of composite materials;
- other engineering industries.
In conclusion, I would like to say about non-resident entrepreneurs operating in the territory of a particular SEZ. Most often, they also have the opportunity to rely on part of the preferences provided for residents, since the conditions for their activities should be negotiated with the management of the SEZ.
For example, in such an economic zone as the Kaliningrad region, a reduced income tax applies to absolutely all enterprises, regardless of the type of economic activity and group of goods. That is why opening a business is the most interesting in the territory of the SEZ. Of course, when it comes to earnings.