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The special economic zone covers the whole territory of the Kaliningrad region. It was established for a term until the year 2031 for purposes of promoting the social and economic development of the Kaliningrad region. Kaliningrad companies which undertake investments projects enjoy taxation privileges, including zero income and property tax charged for six years since the companies were founded, a 50% taxation discount granted to such companies from the sevenths until the twelfth year in business, zero land tax authorized for term of five years and tax-free imports of foreign goods with no Customs fees or taxes charged.
In accordance with the WTO regulations, since April 1, 2016 a transitional period for enterprises, which operate in the special economic zone, expires; starting from that date foreign-made goods imported by the Kaliningrad region are subject to Customs fees and the value added tax.
In this connection the government has been developing measures of support to juridical entities and private entrepreneurs in the Kaliningrad region. An interdepartmental working group has been set up to specify concrete measures of support.