Monday, June 26, 2017

Zero corporation tax enacted for Titanium Valley

All of the corporate income tax will be dropped for residents of the Titanium Valley Special Economic Zone for 10 fiscal periods, according to a recently released report.

The changes reflect the new Sverdlovsk Region law on corporate income tax rates, which was adopted on March 13, Ural Business Consulting reports.

The measure will create a competitive advantage for the future residents of the special economic zone. From the moment a company makes its first profit, it will receive the relief. This is a change from when the relief was applied from the day the company registers as a resident.

Between the 11th and 15th fiscal period, corporate income tax will come to five percent and then will rise again to 13.5 percent starting from the 16th fiscal period, according to First Deputy Economics Minister Anatoly Ogloblin.

The measures are part of a long investment phase for the implementation of the large-scale projects being worked on by the Titanium Valley's residents. Sverdlovsk Region officials relied on the experiences of other federal constituencies in developing their proposal, with the goal of attracting residents to special economic zones, Ural Business Consulting reports.