New regions of Russia may be exempted from income tax for 10 years

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, accepted into Russia. All four regions can exempt from paying income tax to the federal budget for ten years.

Other planned benefits include:

• preferential treatment for investors with tax and non-tax preferences;
• exemption from paying property tax for ten years and from paying land tax for three years;
• reduced insurance premium rates of 7.6% until the expiration of the free economic zone.

Deputy Economy Minister Sergei Nazarov also said that the new regions “possess powerful economic and industrial potential, which has been neglected for a long time.” According to his estimates, 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.

30 September Vladimir Putin signed agreements on the inclusion of the DPR and LPR, as well as the Zaporozhye and Kherson regions into Russia. constitutional Court acknowledged this decision is constitutional. Today, October 5, the President of the Russian Federation signed laws for the admission of new territories, as well as appointed interim heads. Until January 1, 2026, four regions will have a transitional period.

On the course of the Russian military operation and the reaction to it – in online broadcasts “b”.

Laura Keffer