19/01/22

RUSSIA: Talks with potential investors in offshore zone on Kuril Islands started, says ministry.

As published on tass.com, Wednesday 19 January, 2022.

MOSCOW, January 19. /TASS/. Russia’s Ministry for the Development of the Russian Far East and Arctic has started the work on attracting investors to the Kuril Islands where a special economic zone is planned to be created, the ministry’s press service told TASS.

On Tuesday the State Duma (lower house) passed in the first reading the bill providing new organizations registered on the territory of the Kuril Islands with tax exemptions if they observe certain conditions. The document initiated by the Russian government amends the country’s Tax Code.

"We are working with potential investors interested in implementing their projects on the Kuril Islands," the press service said, adding that the issue is first of all about fish and tourism enterprises.

The ministry expects both Russian and foreign businessmen to be interested in the new tax treatment. Minister Aleksey Chekunkov has repeatedly stressed that the Russian authorities will be glad to see investors from all countries, including Japan.

Earlier, the Russian government passed a bill on the regulation of the activities of residents registered on the territory of the Kuril Islands. The treatment of a free customs territory will be introduced on the Kuril Islands as VAT will not be charged on operations with goods supplied from third countries. The draft legislation enables companies willing to start a business on the Kuril Islands to be fully exempt from almost all types of taxes for 20 years. The issue is about taxes on profits and property of organizations, as well as the land and transport tax. The insurance contribution tariffs will be substantially decreased.