ZCZC
BCN-22
RUSSIA-COMPANY-TAX-ZONE
Putin approves special tax zones for foreign companies
MOSCOW, August 5, 2018 (BSS/TASS) – Russian President Vladimir Putin
signed a package of laws establishing special taxation zones for foreign
companies on the Russky Island in the Far East and the Oktyabrsky Island in
the Kaliningrad Region. Documents were posted on the official web-portal of
legal information.
Special administrative zones will appear on islands. Explanatory notes to
the paper say that the law provides for “a more flexible legal regime, in
terms of tax and currency regulation in particular.”
Foreign legal entities with their office or other facilities located on the
islands and Russian companies can become international companies registered
in special areas. The law does not apply to credit and non-credit financial
institutions and operators of payment system. Other companies will acquire a
special status along with the state registration if they assume formal
commitments to make investments in the Russian territory, with the minimum
tag of 50 mln rubles ($790,600) within six months from the registration date.
Management companies to be established by Russian constituencies will be
vested with responsibilities to support functioning of special administrative
areas.
Special taxation regime
A special taxation regime is stipulated for international companies –
residents of special areas. A zero taxation rate will apply to dividend gains
of companies on condition that when a decision to pay dividends is taken, a
company holds for a year already and an at least 15% contribution into an
authorized capital of a dividend payer or depositary receipts entitling to
receive dividends. The rate of 5% applies to gains received by foreign
entities from shares of international holding companies being public
companies as of the dividend payment date.
Amendments to merchant shipping code
Amendments to the Russian merchant shipping code are introduced in terms of
establishing a Russian open register of ships. The register is anticipated
for registration of marine vessels (excluding fishing ones) owned by foreign
individuals and legal entities. “Sport, sailing, pleasure and small craft
used in commercial and noncommercial operations” can be included into this
list. Marine vessels filed into the open register will be granted a right to
wear Russian flag colors.
BSS/TASS/HR/1300