Magadan Oblast
A factor of the regional investment appeal is the special economic zone (here and after referred to as the SEZ), which operates under the Federal Law No 104-FZ of May 31, 1999, “On the Special Economic Zone in the Magadan Region”.
The special economic legal regime of the zone includes tax and customs preferences.
The special economic legal regime is provided for SEZ residents only.
Legal entities and sole proprietors registered in compliance with the laws of the Russian Federation in the special economic zone territory, whose main economic activity is centered on the region and who have no less than 75% of their fixed assets in the Magadan region, have the right to the status of a SEZ resident.
The preferential tax regime of the SEZ in the period of January 1, 2007, through December 31, 2014, exempts SEZ residents from the profit tax. The benefit relates to the revenues invested in industrial and social development in the territory of the Magadan region.
The SEZ regime cuts the high share of transport and energy expenditures in the value of commodities produced and sold in the Magadan region and makes it possible to modernize fixed assets with additional funds in the disposal of SEZ residents.
The region is located far from national industrial centers; therefore, the SEZ provides a preferential customs regime, which exempts foreign economic activity from import duties and economic policy measures for the sake of the market supply and the provision of local residents with quality commodities at accessible prices.
Duty-free imported commodities can be used throughout the territory of the Magadan region only for the industrial needs of the enterprise (excluding excise goods). In the case of selling duty-free imported commodities outside of the SEZ territory, a SEZ resident is permitted to transfer property rights.
Commodities fully made by SEZ residents or processed to a sufficiently high degree are exempt from export duties and other payments in the case of their export outside of the Russian territory. In exporting to the rest of the Russian customs territory, such commodities are viewed as Russian commodities.
The status of the SEZ resident significantly cuts the expenditures in the acquisition of modern equipment, which, in turn, cuts the production costs and assists the putting into service of new modern production facilities. Thereby, the SEZ regime brings the economic conditions in the region close to the economic conditions in central areas of the country with favorable climate, lesser energy costs and relevant proximity to suppliers and consumers.
The SEZ regime in the Magadan region will be valid through December 31, 2014.
We invite you to cooperate!
Contact:
Special Economic Zone Administration State Enterprise of the Magadan Region
Address: 14, Proletarskaya Street, Magadan, Russia, 685000.
Head: Grebenyuk Sergei Nikolayevich (4132)201-777, office (fax) (4132) 200-241
E-mail: sez@maglan.ru;
