MOSCOW, December 29. /TASS/. Russian President Vladimir Putin signed a law on Monday introducing two-year tax holidays for private entrepreneurs in Russian regions.

The measure aims at supporting small business in the industrial, social and scientific spheres.

The law was passed by the lower house of parliament, the State Duma, on December 16 and approved by the upper house, the Federation Council, on December 25.

The legislation gives authorities in the Russian regions the right of offering two-year tax holidays to new private entrepreneurs who have chosen a simplified or patent taxation system.

The tax holidays will be defined as a zero tax rate and become effective in 2015-2020 for private entrepreneurs who will be first registered after the laws come into force.

Russia to get advanced development zones

Putin has also signed into law a bill on the establishment of so-called advanced development zones in the country, according to a corresponding document seen by PRIME on a legal information portal Monday.

The law stipulates that over the first three years advanced development zones can be set up in the country’s Far East only, and after that they can be established in other regions as well. At the first stage, 14 zones are planned to be created in the Far East.

The law foresees a lower corporate tax for zones’ residents, including a zero federal rate for five taxation periods after the first profit, and a regional rate not exceeding 5% during the five taxation periods and no higher than 10% in the next five taxation periods.

The mineral extraction tax in the zones will be calculated with a deduction coefficient varying from 0 to 1 during a 10-year period.