Factors of investment attractiveness of special economic zones in Russia
This newsletter we would like to introduce you to the basic features of Special Economic Zones (SEZ) status and its residents including factors of investment attractiveness. There are four types of SEZ: Industrial/developmental (ID SEZ), Technical/Innovational Zones (TI SEZ), Tourist Zones (TT SEZ), Port Zones (PT SEZ).
Tax abatements are established with the guarantee of protection of SEZ residents during the period of SEZ operation (49 years) from disadvantageous changes of tax and fees legislation, worsening the position of a taxpayer.
Special customs regime
On the SEZ territory the regime of free customs zone is established (FCZ). Foreign goods including equipment, raw materials, construction materials are placed and used without payment of customs import duties and VAT, and also without application of non-tariff regulation (licensing, quotas and other measures to restrict imports). Output exported from the FTZ is also not a subject to export customs duties and VAT.
Lowering of administrative barriers
As part of the SEZ, the regime of a single window mode operates, according to which the residents have the right to receive a set of public services at one place. At the same time there is the possibility of submission and admission of documents, as well as their approval in electronic form.
Such system may be used when apply for construction permit, technical conditions for technological connection to the infrastructure’s network, registration of real estate rights and others.
Professional management of the SEZ
Professional management company provides for maintenance and upkeep of the SEZ infrastructure, services on development of the investment project, building control, representing interests of residents in the state and local authorities etc.
Access to existing infrastructure
SEZ is provided by advanced transportation and engineering infrastructure.