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Tax subsidies on Kuril Islands to be granted to investors with land on islands

Earlier, the Russian government passed a bill on the regulation of the activities of residents registered on the territory of the Kuril Islands

YUZHNO-SAKHALINSK, January 27. /TASS/. The special tax treatment that will be introduced on the territory of the Kuril Islands (the Sakhalin Region), will only work for investing companies with local land lots, Russia’s Deputy Prime Minister, Presidential Plenipotentiary Envoy to the Far Eastern Federal District Yury Trutnev said at a meeting on Thursday.

"All those subsidies [on the Kuril Islands] will be only provided to companies directly located on the Kuril Islands and operating there. Consequently, they will have to receive this land," he said.

Earlier, the Russian government passed a bill on the regulation of the activities of residents registered on the territory of the Kuril Islands. The treatment of a free customs territory will be introduced on the Kuril Islands as VAT will not be charged on operations with goods supplied from third countries. The draft legislation enables companies willing to start a business on the Kuril Islands to be fully exempt from almost all types of taxes for 20 years. The issue is about taxes on profits and property of organizations, as well as the land and transport tax. The insurance contribution tariffs will be substantially decreased.

Russia’s State Duma (lower house) passed the respective bill in the first reading last week.

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