Establishment of Establishment of Special economic zonesSpecial economic zones

in the Russian Federationin the Russian Federation

Establishment of Establishment of Special economic zonesSpecial economic zones

in the Russian Federationin the Russian Federation

Federal Agency for management of special Federal Agency for management of special economic zoneseconomic zones

Federal Agency for management of special Federal Agency for management of special economic zoneseconomic zones

November 2008November 2008

Krasnodar territory Krasnodar territory

Kaliningrad regionKaliningrad region

Irkutsk regionIrkutsk region

Altai regionAltai regionRepublic of BuryatiaRepublic of Buryatia

Stavropol territoryStavropol territoryRepublic of AltaiRepublic of Altai

- industrial-production zones (2)

- technology-innovative zones (4) - tourist-recreational zones (7)

MoscowMoscow

Moscow regionMoscow region

Saint-PetersburgSaint-Petersburg

TomskTomsk

Lipetsk regionLipetsk regionRepublic of TatarstanRepublic of Tatarstan

Sovetskaya GavanSovetskaya Gavan

UlyanovskUlyanovskKrasnoyarskKrasnoyarsk

- Port zones (3)

• 8 8 Federal lawsFederal laws (basic - Federal Law of July 22, 2005 № 116-ФЗ «On special economic zones in the Russian Federation»)

• 20 20 decrees of the Government of the Russian Federationdecrees of the Government of the Russian Federation• 13 agreements on SEZ establishment

Russian Ministry of economic trade and development Advisory councilAdvisory council Expert councilExpert council

RusSEZ central office

JSCJSC « «SEZSEZ»»JSCJSC « «SEZSEZ»»

13 RusSEZ regional branchesRegional branches

of JSC «SEZ»

13 13 SEZ Supervisory boardsSEZ Supervisory boards13 13 SEZ Supervisory boardsSEZ Supervisory boards

System of SEZ managementSystem of SEZ management

Regulatory and legal frameworkRegulatory and legal framework

Guaranties against unfavourable change of tax legislationGuaranties against unfavourable change of tax legislation

Special economic zone is the part of the territory of the Russian Federation, on which special regulations of business activity are in forceSpecial economic zone is the part of the territory of the Russian Federation, on which special regulations of business activity are in force

IPZ - joint site of territory, with area not more than 20 sq.km.

TIZ - not more than 2 sites of territory with total area not more than 3 sq.km.

TRZ - 1 or several sites of territory, the area is not limited

PEZ - territory of sea, river ports(airports), the area not more than 50 sq.km.

IPZ - joint site of territory, with area not more than 20 sq.km.

TIZ - not more than 2 sites of territory with total area not more than 3 sq.km.

TRZ - 1 or several sites of territory, the area is not limited

PEZ - territory of sea, river ports(airports), the area not more than 50 sq.km.

Selection of applications for SEZ establishment is carried out on competitive basis, the competition results are to be approved by the decree of the Government of the Russian Federation

Selection of applications for SEZ establishment is carried out on competitive basis, the competition results are to be approved by the decree of the Government of the Russian Federation

Functioning period IPZ, TIZ, TRZ – 20 years PEZ – 49 yearsFunctioning period IPZ, TIZ, TRZ – 20 years PEZ – 49 years

Individual entrepreneurCommercial enterprise(except for unitary enterprise)

-registered on the territory of municipal entity, in which SEZ is located -concluded agreement on carrying out the activity with SEZ management authorities- approval of business-plan by Expert or Advisory council

Industrial-production

zones

Technology-innovative zones

Tourist-recreational

zonesTechnology-

Innovative zonesTourist-

recreational zones

Special conditions for IPZ:- capital investments not less than 10 mill. euroSpecial conditions for PEZ:- capital investments not less than 3-50-100 mill. Euro (depending on port type and construction/reconstruction of infrastructure facilities)

Port zones

Administrative regulations

Tax and customs treatment

Modern infrastructure

ADVANTAGES

Tax treatmentCustom treatment

Creation of engineering, transport, innovative and social infrastructure

at the budget expense

Creation of administration friendly environment

SEZSEZ

Companies profit tax – 20% (instead of 24%)Speeded up amortization of capital assets

Companies property tax (5 - 10 years) – 0%

Land tax (5 - 10 years) – 0%

Transport tax (5 - 10 years) – 0%

Unified social tax in TIZ – 14% (instead of 26%)

Possibility to discount the expenses for R&D in accounting period, in which these expenses were made

No customs duties on all goods, supplies or machinery shipped to SEZ

Full VAT refund on all Russian goods, supplies or machinery shipped to SEZ

Customs duties and VAT applicable when goods produced inside SEZ are delivered outside SEZ and inside Russia

No import customs duties and taxes collected when goods are imported from SEZ outside Russia, export customs duties should be paid

Stages of SEZ establishment

1 1 yearyear 3 - 4 3 - 4 yearsyears

Registration of land-property

relations

Development of conception and architecturally–planningsolutions

Designing and construction of infrastructure

facilities,ABC

Production of goods and services provision

Designing and construction of

residents’ facilities

Managing functions are carried out by especially created state executive authorities

Owners of real estate units within SEZ territory have the right to buy out the land sites, located under these units

System of state services provision is based on «Single window» technology

Rendering assistance in foreign citizens invitation for working in SEZ

Rendering assistance in getting the technical conditions, approval of construction documentation, issuing permits for real estate

units construction

Industrial-production zones – active development stage

Industrial-production zones – active development stage

Industrial-production SEZ «Alabuga»(Republic of Tatarstan)

Priority fields of activity:• cars production• chemistry and petrochemistry• production of building materials• machine tool industry• pharmaceuticals production

IP SEZ «Alabuga»(Republic of Tatarstan)

IP SEZ «Alabuga»(Republic of Tatarstan)

First «Alabuga» SEZ production

Priority fields of activity:• household appliances production• metalworking production• production of building materials• power-plant engineering• agricultural equipment production

Industrial-production SEZ «Lipetsk»(Lipetsk region)

Administrative-business Administrative-business centercenter

CSZ-Lipetsk production CSZ-Lipetsk production

buildingsbuildings

IP SEZ «Lipetsk» (Lipetsk region)

IP SEZ «Lipetsk» (Lipetsk region)

Technology – innovative special economic zones -

active infrastructure creation

Technology – innovative special economic zones -

active infrastructure creation

Technology-innovative SEZ «Dubna»(Moscow region)

Priority fields of activity:• informational and telecommunication technologies• nuclear nuclear technologies• technologies of new kinds of goods production and services•biotechnologies

Plan ofPlan of architecturally-building architecturally-building conceptionconception

Congress-hall constructionCongress-hall construction

TI SEZ «Zelenograd» (Moscow)

План архитектурно-строительной План архитектурно-строительной концепцииконцепции

Priority fields of activity:• micro- and nanoelectronics• optoelectronics• informational and telecommunication systems• bio-informational and biosensor technologies• nanotechnologies and nanomaterials

Technology-innovative SEZ «Zelenograd»(Moscow)

SEZ residentsSEZ residents ( (MIETMIET))

Technology-innovative SEZ «St.Petersburg»

Priority fields of activity:• hairbreadth and analytical instrument engineering • medical equipment production• software production• electronics and communication facilities production • biotechnologiesPlan of architecturally-building Plan of architecturally-building

conceptionconception(«(«Neudorf siteNeudorf site»)»)

Plan of architecturally-building Plan of architecturally-building conceptionconception

((Novo-Orlovskiy siteNovo-Orlovskiy site))

Technology-innovative SEZ«Tomsk»(Tomsk region)

Plan of architecturally-building Plan of architecturally-building conceptionconception

Customs infrastructure sectionCustoms infrastructure section

Priority fields of activity :• informational and tele- communication technologies• new materials• nanotechnologies• biotechnologies• medical technologies

Technology-innovative SEZ«Tomsk»(Tomsk region)

Tourist – recreational special economic zones -

development of designing and town-planning

documentation

Tourist – recreational special economic zones -

development of designing and town-planning

documentation

TRZ TRZ ««Grand Spa YutsaGrand Spa Yutsa»»

- - SPASPA ((balneologicalbalneological))

- - cultural and cultural and entertainingentertaining

- - golf-tourismgolf-tourism

- - ecologicalecological

TRZTRZ « «New AnapaNew Anapa»»

- - beachbeach

- - cultural and cultural and entertainingentertaining

- - sportsport

- - businessbusiness

TRZs «New Anapa» in Krasnodar territory and «Grand Spa Yutsa» in Stavropol territory

TRZ in Stavropol territory

TRZ in Krasnodar territory

TR SEZ «Grand Spa Yutsa» (Stavropol territory)

TRZ «TRZ «Altai ValleyAltai Valley»»

- - recreationalrecreational

- - culturalcultural--entertainingentertaining

- - mountain skimountain ski

- - ecologicalecological

TRZ «TRZ «Sky-Blue KatunSky-Blue Katun» »

- - sportsport ( ( incl.incl. mountain skimountain ski))

- - culturalcultural--entertainingentertaining

- - recreationalrecreational

- - businessbusiness

TRZ «Sky-Blue Katun» in Altai territory and «Altai valley» in Republic Altai

TRZ in Republic of Altai

TRZ in Altai territory

TRZ TRZ in Irkutsk region in Irkutsk region and Republic of and Republic of BuryatiaBuryatia

ecologicalecological

recreationalrecreational

horsehorse

waterwater

sportsport

TRZ in Irkutsk region, Republic of Buryatia

and Kaliningrad region

TRZ in Irkutsk region TRZ Republic of Buryatia

TRZ in Kaliningrad regionTRZ TRZ in Kaliningrad regionin Kaliningrad region

SPASPA

ecologicalecological

waterwater

businessbusiness

cruisecruise

TR ZEZ «Gates of Baikal»Irkutsk region

TR SEZ «Kuronian spit»Kaliningrad region

Port special economic zones – first stages of creation

Port special economic zones – first stages of creation

Port SEZ creation plan

2015 2015 Start of PZ operationStart of PZ operation

2015 2015 Start of PZ operationStart of PZ operation

2010 - 2014 2010 - 2014 Designing and construction of infrastructure Designing and construction of infrastructure

and residents’ facilitiesand residents’ facilities

2010 - 2014 2010 - 2014 Designing and construction of infrastructure Designing and construction of infrastructure

and residents’ facilitiesand residents’ facilities

2009 2009 Elaboration of conception for PZ creation and development.Elaboration of conception for PZ creation and development.

Elaboration of territorial planning projectsElaboration of territorial planning projects

2009 2009 Elaboration of conception for PZ creation and development.Elaboration of conception for PZ creation and development.

Elaboration of territorial planning projectsElaboration of territorial planning projects

2008 2008 Holding of the competition and decision on PZ creationHolding of the competition and decision on PZ creation

Definition of PZ boundariesDefinition of PZ boundariesDevelopmentDevelopment of management systemof management system

2008 2008 Holding of the competition and decision on PZ creationHolding of the competition and decision on PZ creation

Definition of PZ boundariesDefinition of PZ boundariesDevelopmentDevelopment of management systemof management system

Results of SEZ activity as of the end of 2008

Results of SEZ activity as of the end of 2008

1. Amount of budget investment - 36 bill. rubles ( > 1 bill.€)2. Number of SEZ residents - 165 3. Amount of private investment - 17 bill. rubles ( ≈ 0,5 bill.€)4. Production (services) - 12 bill. rubles

( ≈ 0,35 bill.€)5. Number of workplaces – 6 thousand

Estimated results of SEZ activity until 2025

all SEZ IPZ TIZ TRZ PZ

Number of workplacesNumber of SEZ residents

Amount of private investment (bill. Rub.)

Amount of tax (bill. Rub.) Production & services (bill. Rub.)

Thank you

for your attention

www.rosoez.ru