In new regions, special tax regimes will work from January 1

On the territories of the Donetsk and Luhansk People’s Republics (DPR and LPR), as well as Zaporozhye and Kherson regions, special tax regimes will begin to operate from January 1, 2023. About it informs Federal Tax Service of the Russian Federation.

Among other things:

• introduced the possibility of obtaining patents;
• introduced a tax on professional income;
• preferential rates for the simplified taxation system (STS) have been established.

“Thus, in the Donetsk and Lugansk People’s Republics, a rate of 3% will be applied for the STS if the object of taxation is “income”, and 7% for income reduced by the amount of expenses. In Kherson and Zaporozhye regions, it will be 2 and 5%, respectively,” the Federal Tax Service reports, noting that this is significantly lower than the base rates established by the Tax Code.

In Zaporozhye and Kherson regions, reduced rates of the unified agricultural tax have also been established – from 0.5 to 2%.

In early October, the Ministry of Economy announced adoption of a law on the creation of a single free economic zone on the territory of the DPR and LPR, as well as the Zaporozhye and Kherson regions. According to the ministry, the new territories will ensure the growth of all-Russian indicators in such industries as metallurgy (by 20%), coal (by 6%), grain production (by more than 10%), sunflower (by more than 20%). The GRP of new regions should reach 3 trillion rubles within five years.

President Vladimir Putin signed treaties on the inclusion of new territories in Russia on September 30. They became part of the Russian Federation following the results of referendums.

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Maria Fedotova