RF State Duma adopts a package of laws on privileges in the Arctic
The entire Arctic area of Russia is to become a special economic zone with extensive privileges for the business
On 7 July 2020, the State Duma of the Russian Federation adopted the third reading of the package of federal laws on state support of business activities in the Arctic Zone of Russia, says press center of the Ministry for the Development of the Russian Far East and Arctic.
The approved package of laws will be submitted to the Federation Council. The documents will come into effect in 45 after they are signed by the head of the state and officially published.
According to the newly adopted laws, the entire Arctic area of Russia is to become a special economic zone with extensive tax and non-tax privileges for the business. The key purpose is to encourage the creation of new enterprises in the Arctic and generation of high-paying jobs for Russian citizens.
The laws adopted by the State Duma deputies expand the territory of Russia’s Arctic Zone with 31 new territories. Now, the Arctic Zone of Russia comprises 4 entities of the Russian Federation and 45 municipal entities.
To obtain a status of the Arctic Zone resident to be eligible for state support a legal entity should be registered in the Arctic, capital investments into new project or new business should be at least RUB 1 million with no tax/duty debt exceeding 25% of the asset balance. The process of obtaining a status of the Arctic Zone resident will be arranged electronically on the arctic-russia.ru portal.
The federal laws developed by the Ministry for the Development of the Russian Far East and Arctic in pursuance of the presidential decision were submitted by the Government to the lower chamber of the Parliament in February 2020.
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