Belgorod, Bryansk and Kursk regions will be included in the free economic zone

The free economic zone (FEZ) regime will be extended to the Belgorod, Bryansk and Kursk regions, Prime Minister Mikhail Mishustin announced at a government meeting. The measure, in particular, provides that for ten years investors in these three regions will not be charged income tax to the federal budget.

Mikhail Mishustin recalled that since July 2023, the SEZ regime has been in effect in the DPR, LPR, Kherson and Zaporozhye regions. Neighboring regions, as the Prime Minister indicated, also need additional support, so the government will consider two bills expanding the SEZ to three more regions.

“It is necessary to make adjustments to the Tax Code and to the legislation on free economic zones in order to simplify the attraction of private capital in industry, logistics, and information technology. We hope that the decisions taken will help entrepreneurs not only reduce costs, but also increase production volumes of products and services, create new jobs and provide citizens who live in border regions with everything they need,” said Mr. Mishustin. A fragment of the meeting was published in Telegram-government channel.

The SEZ regime assumes that for ten years investors in these areas will not be charged income tax to the federal budget. There is also a discount on payments to the regional budget and uniform reduced rates of insurance premiums. All customs procedures on the territory of the FEZ take into account the special legal regime. In addition, by decision of the subject, entrepreneurs may be exempt from paying land tax for three years.

Milena Kostereva