What is ASEZ all about?
Territory of advanced socio-economic development or advanced special economic zone (ASEZ) – is a territory with a special legal regime for conducting activities, which offers a set of tax incentives and administrative preferences for investors.
The purpose for creating ASEZ – is developing favorable conditions to attract investments, ensure advanced socio-economic development and create comfortable conditions for the vital activities of the population.
ASEZ is regulated by Federal Law of 29.12.2014 No. 473-ФЗ “Abut territories of advanced socio-economic development of the Russian Federation”.
What are the incentives and preferences in ASEZ?
7,6% - Total amount of insurance premiums for 10 years
0% - Income tax during the first 5 years, 12% - in the next 5 years
0% - Land tax in the first 3 years
0% - Property tax during the first 5 years, 1,1% - in the next 5 years
10 days – Fast-track VAT refund
Preferences for the residents:
- “One-Stop-Shop” regime for the investor;
- Possibility of land plot lease without tendering;
- no quotas for foreign manpower;
- Free customs zone regime;
- Fast-track VAT refund (10 days);
- Managing Company’s right to judicial protection of the residents;
- Reduced rates for the land plots lease;
- Funding the projects construction out of the budget funds.
Who can become a resident?
The ASEZ resident is seen as the individual entrepreneur or commercial legal entity that has been state registered in the ASEZ territory and has no subsidiaries outside the ASEZ.
- The minimum investment requirements shall amount to RUB 500 000.
- No record of the individual entrepreneur or commercial legal entity as to unpaid taxes and levies, insurance premium to the state non-budgetary funds of the Russian Federation, debts on other mandatory payments to the budgets of the Budgetary system of the Russian Federation for the previous calendar year, which size is not above twenty five per cent of the balance value of the applicant’s assets, based on the accounting (financial) statements for the last reporting period (sub-clause 7 clause 7 article 11 №212-FZ).
- The Company shall not be undergoing restructuring, winding-up, bankruptcy.
- The types of business activities shall correspond to the activities established in the relevant Statutory Instruments of the Russian Federation concerning the creation of ASEZ.
How to become a resident?
Step 1. Ensure the compliance with the ASEZ resident criteria
Step 2. Prepare the required set of documents
- Get the investment project business plan developed
- Determine the need for a land plot and infrastructure
- Prepare the application to execute the agreement for carrying out activities
- Prepare the documents to the application:
- copies of the incorporation documents (for legal entities);
- business plan in a prescribed form;
- copy of the legal entity or individual entrepreneur state registration certificate;
- copy of the certificate of registration with tax authority;
- duly verified translation into Russian of the documents of state registration of the legal entity or individual entrepreneur in compliance with the current law of the relevant state (applies to foreign entities).
Step 3. File application to get the ASEZ resident status.
- The application for the resident status may be filed at the official website of the Far East development Corporation.
- Receive a positive answer from JSC “Far East Development Corporation”.
- Sing the agreement with JSC “FEDC” for carrying out activities.
- Receive the certificate of registration of the ASEZ resident at JSC “FEDC”.