Free Economic Zone
In accordance with the Federal law dated November 29, 2014 № 377-FL «On the development of the Republic of Crimea and the city of Federal importance Sevastopol Free Economic Zone on the territory of the Republic of Crimea and the city of Federal importance Sevastopol». From January 1, 2015 on the territory of the Republic of Crimea and the city of Federal importance Sevastopol it was established Free Economic Zone (the Crimean FEZ).
Free Economic Zone (FEZ) provides for a special regime for conducting business and other activities, as well as the application of the customs procedure of free customs zone.
The term of operation of FEZ is 25 years (until December 31, 2039).
Legal entities and individual entrepreneurs registered on the territory of the Republic of Crimea can become participants in FEZ.
Bodies of FEZ management
1. Reducing the corporate income tax rate
- federal budget – 0% for 10 years;
- budget of the Republic of Crimea – 6%* and 13,5%(* according to the law of the Republic of Crimea dated December 29, 2014 № 61-LRC/2014 types of business)
These rates are applied if taxpayers keep separate records of income (expenses) from activities carried out as a participant of FEZ and income (expenses) from other activities.
2. Exemption from tax property of organizations for 10 years
3. Accelerated amortization of own fixed assets
4. Exemption from land tax for 3 years
5. Reduced insurance premium rates of 7.6%
6. Application of the customs procedure of free customs zone in the Republic of Crimea
7. Land plots for rent without bidding
8. Preferential lending for investment project
Requirements for the participant in a Fee Economic Zone (FEZ)
- registration in the territory of the Republic of Crimea (or the presence of a branch in the territory of the Republic of Crimea)
- tax accounting with the tax authority
FEZ participants are not entitled to carry out activities in the sphere of subsurface use for the purposes of exploration and production of minerals. They cannot developing of the continental shelf of the Russian Federation, except for extraction of underground water used for drinking and domestic water or process water supply to industrial objects, or objects of agricultural purpose and except for the exploration and extraction of natural medicinal resources for the implementation of health resort treatment and recreation.
Requirements for an investment project:
- the volume of capital investments in the first 3 years:
- at least 6 million rubles - for SMEs
- at least 60 million rubles - for other persons
- the project area is the Republic of Crimea
The schedule should provide for capital investment in the amount of at least 30 percent of the total capital investment in the first year of implementation of the investment project, if the implementation of the investment project is not related to the need for design, construction and (or) reconstruction of capital construction projects, which require obtaining the conclusions, approvals and (or) permits of authorized bodies provided by regulatory legal acts.
Reasons for refusing to make changes to the agreement on the conditions of activity in FEZ:
- changing the purpose of the investment project;
- implementation of activities that do not meet the requirements of parts 2 and 3 of article 12 of Federal law № 377-FL dated November 29, 2014 "On the development of the Republic of Crimea and the Federal city of Sevastopol and Free Economic Zone on the territories of the Republic of Crimea and the Federal city of Sevastopol";
- a decrease in the total volume of capital investments;
- changing the schedule of annual capital investment in the first three years of the investment project, if this will lead to an increase in the duration of the investment project;
- changing in the territory of the investment project implementation;
- reduction in the number of jobs planned for creation.
In accordance with article 18 of Federal law № 377-FL dated November 29, 2014 "On the development of the Republic of Crimea and the Federal city of Sevastopol and Free economic zone on the territories of the Republic of Crimea and the Federal city of Sevastopol" the procedure for free customs zone is applied throughout Free Economic Zone (FEZ).
Application on FEZ customs procedure of free customs zone shall be in accordance with the Agreement on free (special) economic zones on the customs territory of the Customs Union and customs procedure of free customs zone dated June 18, 2010.
«Free customs zone - a customs procedure in which goods are placed and used within the territory of FEZ or part of it without paying customs duties and taxes, as well as without applying non-tariff regulation measures in respect of foreign goods and without applying prohibitions and restrictions on goods of the customs Union».
IMPORTANT! Equipment placed under FEZ customs procedure of free customs zone, put into operation, as well as goods placed under free customs zone procedure and used for the creation of real estate objects on the territory of FEZ are exempt from payment of import customs duties and taxes.
Foreign goods placed under the customs procedure of free customs zone retain the status of foreign goods.
The creation of a customs control zone is carried out in accordance with the legislation of the Russian Federation.
Algorithm for applying free customs zone procedure and the list of required documents
Algorithm (http://crimea.customs.ru)
Federal Law No. 377-FZ dated November 29, 2014 "On the development of the Republic of Crimea and the Federal city of Sevastopol and Free economic zone on the territories of the Republic of Crimea and the Federal city of Sevastopol".
Federal Law 377-FZ (on September 28, 2023)
Federal Law of the Russian Federation No. 378-FZ dated November 29, 2014 "On Amendments to Certain Legislative Acts of the Russian Federation in Connection with the Adoption of the Federal Law "On the Development of the Crimean Federal District and the Free Economic Zone on the Territories of the Republic of Crimea and the Federal City of Sevastopol".
Federal Law 378-FZ ( http://pravo.gov.ru)
Federal Law of the Russian Federation No. 379-FZ dated November 29, 2014 "On Amendments to Parts One and Two of the Tax Code of the Russian Federation in Connection with the Adoption of the Federal Law "On the Development of the Crimean Federal District and the Free Economic Zone on the Territories of the Republic of Crimea and the Federal City of Sevastopol".
Federal Law 379-FZ ( http://pravo.gov.ru)
Federal Law No. 204-FZ dated July 13, 2020 "On Amendments to Part Two of the Tax Code of the Russian Federation".
Federal Law 204-FZ ( http://pravo.gov.ru)
Resolution of the Government of the Russian Federation No. 827 dated June 27, 2019 "On Approval of the Rules for Verifying the Compliance of the Activities of a Participant of the Free Economic Zone in the Territories of the Republic of Crimea and Sevastopol with the Requirements of the Federal Law "On the Development of the Republic of Crimea and the City of Federal Significance of Sevastopol and the Free Economic Zone in the Territories of the Republic of Crimea and the City of Federal Significance of Sevastopol".
Resolution 827 ( http://pravo.gov.ru)
Resolution of the Government of the Russian Federation No. 10 dated January 18, 2021 "On the Establishment of Coefficients depending on the Type of Economic Activity Carried out by Organizations and Individual Entrepreneurs who have received the status of a participant in a Free Economic Zone in the Territories of the Republic of Crimea and Sevastopol, to determine the conditions for the application of reduced insurance premium rates".
Resolution 10 ( http://pravo.gov.ru)
Resolution of the Government of the Russian Federation No. 2221 dated December 07, 2021 "On Approval of the Rules for Granting Subsidies from the Federal Budget to Russian Credit Organizations for Reimbursement of Lost Income on Loans Issued to Participants of the Free Economic Zone in the Territories of the Republic of Crimea and Sevastopol for the Implementation of Investment Projects".
Resolution 2221 ( http://publication.pravo.gov.ru)
Resolution of the Government of the Russian Federation No. 1812 dated October 13, 2022 "On the Amendment and Invalidation of Certain Deeds of the Government of the Russian Federation".
Resolution 1812 (PDF, 471.00 Kb)
Order of the Ministry of Construction and Housing and Utility Infrastructure of the Russian Federation No. 8/pr dated January 10, 2023 "On Approval of the Form of the Report on the Results of Functioning of the Free Economic Zone on the Territories of the Republic of Crimea and Sevastopol to be Submitted by the Supreme Executive Body of the Republic of Crimea and the Supreme Executive Body of Sevastopol".
Order 8/pr (PDF, 510.00 Kb)
Order of the Ministry of Construction and Housing and Utility Infrastructure of the Russian Federation No. 14/pr dated January 10, 2023 "On Approval of the Procedure for Work of Expert Councils on the Issues of the Free Economic Zone in the Territories of the Republic of Crimea and Sevastopol".
Order 14/pr (PDF, 509.00 Kb)
Order of the Ministry of Construction and Housing and Utility Infrastructure of the Russian Federation No. 35/pr dated January 23, 2023 "On Approval of the Form of the Certificate of Inclusion of a Legal Entity, Individual Entrepreneur in the Unified Register of Participants of the Free Economic Zone in the Territories of the Republic of Crimea and Sevastopol".
Order 35/pr (PDF, 510.07 Kb)
Order of the Ministry of Construction and Housing and Utility Infrastructure of the Russian Federation No. 36/pr dated January 23, 2023 "On Approval of the Criteria and Methodology for Evaluation of the Investment Declaration for the Efficiency of Investment Project Implementation in the Free Economic Zone in the Territories of the Republic of Crimea and Sevastopol".
Order 36/pr (PDF, 509.07 Kb)
Order of the Ministry of Construction and Housing and Utility Infrastructure of the Russian Federation No. 93/pr dated February 13, 2023 "On Approval of the Procedure for Maintaining a Unified Register of Participants of the Free Economic Zone in the Territories of the Republic of Crimea and Sevastopol".
Order 93/pr (PDF, 457 Kb)
Order of the Ministry of Construction and Housing and Utility Infrastructure of the Russian Federation No. 171/pr dated March 13, 2023 "On Approval of the Sample Form of the Agreement on the Terms and Conditions of Activity in the Free Economic Zone in the Territories of the Republic of Crimea and Sevastopol".
Order 171/pr (PDF, 543 Kb)
Order of the Ministry of Construction and Housing and Utility Infrastructure of the Russian Federation No. 194/pr dated March 16, 2023 "On Approval of the Form of the Investment Declaration to be Attached to the Application for Conclusion of the Agreement on the Terms and Conditions of Activity in the Free Economic Zone in the Territories of the Republic of Crimea and Sevastopol".
Order 194/pr (PDF, 607 Kb)
Law of the Republic of Crimea No. 61- LRC/2014 "On setting the rate for corporate income tax on the territory of the Republic of Crimea" dated December 29, 2014.
61- LRC/2014 (PDF, 407.02 Kb)
Resolution of the Council of Ministers of the Republic of Crimea No. 391 "On certain issues of urban development and land use when placing objects necessary for the implementation of investment projects by participants of Free economic zone" dated July 12, 2019.
Resolution of the Council of Ministers of the Republic of Crimea № 391 (on December 01, 2023)
Order of the Ministry of Economic Development of the Republic of Crimea No. 361 "On Approval of the Administrative Regulations for Providing the State Service "Conclusion of an Agreement on the Terms and Conditions of Activity in the Free Economic Zone" dated October 21, 2022.
Order 361 (PDF, 31 Mb)
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