ARKHANGELSK, August 12. /TASS/. The Arkhangelsk Region's Governor Alexander Tsybulsky suggested modifying federal regulations for business residency in the Russian Federation's Arctic Zone so that the mechanism is applicable to new industries only.

"I believe, with the active and effective use of this tool for almost three years now, it is time to reconsider it slightly, including conditions for [business] residence in the Arctic Zone," he said at the Arctic - Regions forum in Arkhangelsk. "We can see now that many companies tend to re-register themselves in preferential regimes, having previously been engaged in economically efficient and profitable activities. Here, I believe, we need to mind that initially all the preferential regimes, beginning from special economic zones and advanced-development territories, the Arctic Zone's business residency have been tools to create new economic activities, new enterprises, new industries."

Business residency should not be a tool to avoid standard taxation, he stressed. "Thus, I would rather ask the Ministry [for Development of the Far East and the Arctic] to cooperate with us on this issue. I am sure, in this regard I reflect the opinion of all Arctic governors," he added.

The Arkhangelsk Region offers to the Arctic Zone's business residents income tax benefits: 5% for the first five years from the first profit and 10% for the next five years. Corporate property tax rates: the first five years - 0.1%, the next five years - 1.1%.

Capital of the North advanced-development territory

The Arkhangelsk Region will create in the near future a new advanced-development territory - Capital of the North, Minister for Development of the Far East and the Arctic Alexey Chekunov told the forum. "In the coming days, the prime minister is to sign a decree on the creation of a new advanced-development territory - Capital of the North - for implementation of investment projects in the Arkhangelsk Region," the minister said.

Earlier, the government posted on its website information about plans to create a new advanced-development territory, Capital of the North, in the Arkhangelsk Region, which will offer incentives to its business residents. "We hope that in the coming weeks, or even days, it will appear and will begin its work in the Arkhangelsk Region," the governor continued. "All those planning to invest in the region's economy, to create new industries, I urge them to take advantage of this very profitable regime and become residents of this new advanced-development territory. The work was long, very thorough, very detailed, and I believe due to this very serious approach, we have managed to create a very balanced structure."

About the forum

The Arctic - Regions forum ran in Arkhangelsk on August 8-9. The event was organized by the Arkhangelsk Region's government, and co-organized by the NEVA International Company. The forum's titular partner was the Rosatom State Corporation. TASS was the event's information partner.