The territory of advanced social and economic development "Kostomuksha"

By the Decree of the Government of the Russian Federation of February 12, 2019 № 122  on the territory of the municipal formation "Kostomuksha urban district", the territory of advanced socio-economic development "Kostomuksha" (hereinafter - the territory of advanced development) was created, meaning that its functioning will ensure the achievement of stable social -economic development of the municipality by attracting investments and creating new jobs.   

Decree of February 12, 2019 № 122 defines the following types of economic activities, in the implementation of which a special legal regime for carrying out entrepreneurial activities in the implementation of investment projects by residents is in effect in the priority development area:
  • Food production;
  • Wood processing and production of wood and cork products, except furniture, production of straw and plaiting materials;
  • Manufacture of other non-metallic mineral products;
  • Manufacture of motor vehicles, trailers and semi-trailers;
  • Electricity, gas and steam supply; air conditioning;
  • Activities for the provision of places for temporary residence;
  • Activities for the provision of food and beverages;
  • Fishing and fish farming;
  • Production of medicines and materials used for medical purposes;
  • Manufacture of other finished products;
  • Manufacture of electrical equipment;
  • Development of computer software, consulting services in this area and other related services;
  • Information technology activities;
  • Repair of computers, personal and household items;
  • Activities in the field of sports, recreation and entertainment.

Organizations that have received the status of a TASED resident are provided with the following benefits: 

Tax name

TASED

Without TASED

Income tax, incl.

5%

20%

Russian Federation

0%

2%

Republic of Karelia

5%

18%

Land tax (municipality)

0%

on average 1,5%

Corporate property tax (Republic of Karelia)

0%

2,2%

Insurance contributions to state extra-budgetary funds (Russian Federation), incl:

7,6%

30%

Pension Fund

6%

22%

Social insurance fund

1,5%

2,9%

Compulsory health insurance fund

0,1%

5,1%

  • Zero rates on property tax of organizations within 5 years from the date of registration on the balance sheet and land tax within 10 years from the date of ownership of the land plot
  • Income tax rate of 5% for the first five years and 10% for the next five years
  • Reduced (4 times) rates of insurance premiums for 10 years in the amount of 7.6%

Legal and regulatory framework for creating a territory of advanced socio-economic development

In accordance with article 34 of the Federal Law of December 29, 2014 № 473-FZ "On territories of advanced socio-economic development in the Russian Federation" in single-industry towns with the most difficult socio-economic situation (category 1) and single-industry municipalities of the Russian Federation (single-industry towns) with a stable socio-economic situation (category 2), Territories of Advanced Social and Economic Development (TASED) can be created. 

Residents of territories of advanced social and economic development are legal entities that are commercial organizations, with the exception of state and municipal unitary enterprises, financial organizations, including credit and insurance organizations and professional participants in the securities market that have entered into agreements on the implementation of activities in the territories of advanced social and economic development. economic development with state authorities of the constituent entities of the Russian Federation and (or) local self-government bodies of municipalities included in the register of residents of territories of advanced socio-economic development and simultaneously meeting the following requirements

  1. Registration of a legal entity is carried out on the territory of a single-industry municipal formation.
  2. The activities of a legal entity are carried out exclusively on the territory of a single-industry municipality.
  3. A legal entity implements an investment project on the territory of a single-industry municipal formation that meets the requirements established by the Government of the Russian Federation.
  4. A legal entity is not a city-forming organization of a single-industry municipal formation of the Russian Federation (single-industry town) or its subsidiary.

Requirements for investment projects implemented by residents of territories of advanced socio-economic development created in the territories of single-industry municipalities of the Russian Federation (monotowns) 

1. An investment project implemented by a resident of the territory of advanced socio-economic development, created on the territory of a single-industry municipal formation of the Russian Federation (single-industry town) included in the list approved by the Government of the Russian Federation in accordance with Article 34 of the Federal Law "On territories of advanced socio-economic development in Of the Russian Federation " (hereinafter referred to as a resident, a priority development area, an investment project, a single-industry town), must simultaneously meet the following requirements: 

  • within the framework of the investment project, the number of jobs created in accordance with the agreement on the implementation of activities in the priority development area concluded by the legal entity with the state authorities of the constituent entity of the Russian Federation (hereinafter referred to as the agreement) cannot be less than 10 units during the first year after the inclusion of the legal persons to the register of residents of priority development territories (hereinafter referred to as the register), unless otherwise provided by the decision of the Government of the Russian Federation on the creation of a priority development territory. For legal entities that have operating production facilities in the territory of a single-industry town before obtaining the status of a resident of the territory of advanced development, the number of new jobs created must simultaneously be at least the average number of employees of the legal entity for the last 3 years (or for the period of its existence, if it exists less than 3 years);  
  • within the framework of the investment project, the volume of capital investments in accordance with the agreement cannot be less than 2.5 million rubles during the first year after the legal entity is included in the register, unless otherwise provided by the decision of the Government of the Russian Federation on the creation of a priority development territory;
  • as a result of the implementation of the investment project, it is not envisaged to execute contracts concluded with the city-forming organization of the single-industry town or its subsidiaries, and (or) receive proceeds from the sale of goods, the provision of services to the city-forming organization of the single-industry town or its subsidiaries in an amount exceeding 50 percent of all proceeds received from sale of goods (services), work performed, produced (rendered) as a result of the investment project;
  • the implementation of the investment project does not provide for the attraction of foreign labor in an amount exceeding 25% of the total number of employees;
  • as a result of the implementation of the investment project, the production of excisable goods (with the exception of cars and motorcycles), as well as the production of goods and (or) the provision of services, the performance of work in the following types of economic activities is not provided : 

— extraction of crude oil and natural gas; provision of services in the field of oil and natural gas production; 

— activities of pipeline transport;

— production of petroleum products;. wholesale and retail trade;

— logging;

— operations with real estate;

— types of economic activities in which 20 or more percent of the average number of employees of all organizations of a single-industry town is employed, as well as the main type of economic activity of the city-forming organization of a single-industry city.

2. When determining the volume of capital investments, the costs of creating (acquiring) depreciable property are taken into account, namely, the costs of new construction, technical re-equipment, modernization of fixed assets, reconstruction of buildings, the acquisition of machinery, equipment (excluding the cost of purchasing cars, motorcycles, sports , tourist and pleasure boats, as well as the costs of construction and renovation of residential premises). This does not take into account: 

  • property received (acquired) by a resident, the costs of which were previously included in the volume of capital investments by other residents;
  • costs for the creation (acquisition) of buildings and structures located on land plots on which the investment project is being implemented, as of the date the legal entity is included in the register, as well as other costs for the implementation of the investment project incurred before that date.

3. The actual volume of capital investments made during the implementation of the investment project is determined based on the prices of goods (works, services) excluding value-added tax.

How to become a resident of the TASED "Kostomuksha"?

  1. Call the investment representative of the Kostomuksha city district by phone +7 911 660 65 52 (Bubnova Zoya Vasilievna).  
  2. Prepare a business plan and an investment project passport.
  3. Submit an application to the Ministry of Economic Development and Industry of the Republic of Karelia.

Normative legal acts

Order of the Ministry of Economic Development and Industry of the Republic of Karelia № 137-A dated 20.09.2016   "On approval of the procedure for concluding agreements on the implementation of activities in the territories of advanced socio-economic development with legal entities that are commercial organizations, with the exception of state and municipal unitary enterprises, financial organizations, including credit and insurance organizations and professional participants in the securities market "

Investment portal of the Republic of Karelia