Law on incentives for investors in the Arctic adopted
On 23 June, deputies of the State Duma of the Russian Federation considered in the second reading and unanimously adopted a package of bills on state support for entrepreneurial activity in the Arctic zone of Russia.23 June 2020
The bills were authored by the Russian Ministry for the Development of the Russian Far East and introduced by the Russian Government to the Lower House of Parliament in February 2020.
The bills provide that the entire Russian Arctic becomes a special economic zone with a wide range of tax benefits and non-tax preferences for businesses. Their main goal is to nurture startups and boost job creation for Russian citizens in the Arctic.
Residents of the Arctic zone can be commercial organisations or self-employed persons who are ready to implement a new investment project and invest at least RUB 1 million in it. The resident status allows receiving benefits for federal, regional, and local taxes, reimbursement of part of the premium payments to state extra-budgetary funds. The Government of the Russian Federation will be able to also establish other support measures for the residents, including the subsidies for the reimbursement of the interest rate on borrowed loans and subsidies for the reimbursement of expenses for the payment of coupon income on bonds issued as part of investment projects.
The entire process of obtaining resident status in the Arctic zone will be carried out electronically on the
investment portal arctic-russia.ru.