24 May 2016
Russian President Vladimir Putin has approved the law “On Amending Parts One and Two of the Russian Tax Code”, introducing new tax breaks for investors in Russia’s Far East.
In the words of Head of the Ministry for the Development of the Russian Far East Alexander Galushka, “a fundamentally new model is being introduced: the investor receives a tax break following a pre-alert procedure: after achieving a certain level of investment in a project, the investor can benefit from a tax break following notification. No need to prove anything for public officials, to be entered on to some registers or sign any agreements. You invest your money in Russia’s Far East – and you are eligible for preferential taxation.”
“If any investor puts RUB 50 million over three years into some projects in Russia’s Far East, or RUB 500 million over five years, it will enjoy income tax breaks and preferential taxation in the extraction of mineral resources for ten years,” explained Minister for the Development of the Russian Far East Alexander Galushka. Investments made since 1 January 2013 will be taken into account.
For 10 years following receipt of the first profits from an investment project, the entrepreneur does not pay the profit tax part going to the federal budget – 2%. The regional part of the profit tax is fixed by Russia’s Far East authorities for the first 5 years. It may range from 0% to 10% for the next 5 years, but will not be less than 10% of the rate credited to the Russian Region’s budget (18%).
Mineral Extraction Tax (MET) breaks are calculated as follows: for the first two years, the investor is fully exempted from MET, the preferential taxation regime being effective for 10 years. During this time, the tax break amount goes down by 20% every 2 years.
Any production or manufacturing firm, apart from companies producing excisable goods (with the notable exception of car and motorcycle manufacturers), as well as oil and gas companies, may benefit from tax breaks in Russia’s Far East.
Profit tax breaks will be available starting on 1 January 2017, while MET tax breaks will be available already starting on 1 July 2016. These terms will apply until 1 January 2029.
18 January 2024
Bahrain Joins Framework Declaration on Conservation of Gyrfalcons
The Kingdom of Bahrain has become the seventh country to join the Declaration of Intent for the Conservation of the Gyrfalcon Population. The document was adopted by Russia, China, Kyrgyzstan, Kazakhstan, Mongolia, and the UAE as part the Falcon Day International Forum, which was first held in Vladivostok during the 8th Eastern Economic Forum. The event was managed by the Roscongress Foundation.
27 February 2024
Russia and Bahrain Look to Intensify Cultural and Humanitarian Cooperation
Advisor to the Russian President Anton Kobyakov held a meeting in Moscow with Ambassador Extraordinary and Plenipotentiary of the Kingdom of Bahrain to the Russian Federation Ahmed Al-Saati, during which the two officials discussed a wide range of issues concerning economic, cultural, and humanitarian cooperation between the two countries and reached a number of agreements.
17 April 2024
Amur Region Government Discusses Preparations for AmurExpo 2024
Members of the Amur Region government discussed preparations for the Russian-Chinese AmurExpoForum 2024, which will take place on 24–26 May on both banks of the Amur River. For the second year in a row, based on instructions from Russian President Vladimir Putin, the Forum will serve as an offsite platform of the Eastern Economic Forum. The Forum will be organized with the support of the Roscongress Foundation.
