In August 2018, a package of laws on creation of special administrative regions on the territory of the Kaliningrad Region and Primorsky krai was adopted. In accordance with the Federal Law of 03.08.2018 N 290-FZ "On International Companies and International Funds", Federal Law of 3 August 2018 No. 291-FZ "On Special Administrative Regions in the Kaliningrad Region and the Primorsky Krai", Governmental Resolution of Kaliningrad Region dated December 24, 2018 No. 780, the functions of the management company in a special administrative region on the territory of Oktyabrsky Island (Kaliningrad Region) from January 21, 2019 are assigned to the Kaliningrad Region Development Corporation Joint Stock Company.
SAR participants can be international companies and international funds that have entered into an agreement on the implementation of activities in the SAR and are included in the register of SAR participants as a result of their state registration. To date, 35 international companies and 1 international fund are included in the register of SAR participants on the territory of Oktyabrsky Island (Kaliningrad Region). Some of the largest companies re-registered in the SAR are:
- public company En + Group;
- public company RUSAL;
- one of the structures of the largest development and construction group of companies PIK;
- a holding structure of one of the largest enterprises of the agro-industrial complex "Sodruzhestvo".
- the international fund "Public Interest Fund" created by Yandex.
To date, the SAR members have created about 70 new jobs, including managers and top-level specialists; permanent offices of international companies have been opened on the territory of Oktyabrsky Island.
The investments of the SAR participants in the Russian economy in 2019-2020 amounted to more than 50 billion rubles.
Tax revenues from the SAR participants in the 1st half of 2020 amounted to over 200 million rubles, 130 of which went to the regional budget. Assessment for the 2nd half of 2020 - 425 million rubles, incl. 137 million rubles to the regional budget. Forecast for 2021 - 550 million rubles of tax deductions, incl. 350 million rubles to the budget of the Kaliningrad region.
Taking into account the existing law enforcement practice, as well as in order to improve the efficiency of the ATS, the Corporation continuously analyzes the current legislation in this area, forms and, together with the Government of the Kaliningrad Region, sends motivated proposals to improve the legal and regulatory framework governing the activities of business entities in the SAR.
Today, the Corporation has ensured an accessible exchange of information between applicants and the region, continuously advises representatives of foreign companies, and provides the possibility of legal support for individual stages of redomiciliation. Currently, there is a significant increase in the activity of foreign companies wishing to re-register in special administrative regions. The management company has built an open dialogue with stakeholders. To date, applicants have access to all the necessary information about special administrative regions, there is a worked out procedure for the actions of the companies being re-domiciled, the formation of a sufficient regulatory and legal framework has been completed.
The corporation intends to continue actions aimed at attracting new members of the SAR, while simultaneously expanding the circle of persons who can be registered within the special administrative region. Among the priority areas of the Corporation's activities as a SAR management company in 2021 will be, first of all, work to attract investments from SAR participants to the region, participate in the creation of a competitive tax regime in comparison with popular offshore jurisdictions in order to attract qualitatively new categories of companies, as well as create favorable conditions for the economic activity of registered participants of the SAR.
Changes to federal legislation are expected in 2021 to allow companies from a wider range of foreign jurisdictions to re-register to special administrative regions. So, a special administrative region on the territory of Oktyabrsky Island (Kaliningrad region) next year will probably be able to accept companies from such jurisdictions as the British Virgin Islands and Belize.
Registration of international companies in a special administrative region on the territory of Oktyabrsky Island means not only the emergence of new tax residents, the creation of jobs in the Kaliningrad region and investment in the economy of the region and the Russian Federation, in general, but also creates the preconditions for the transfer of certain elements of large holding structures from Russian and foreign capital to the territory of the Kaliningrad region.
SAR participants can be international companies and international funds that have entered into an agreement on the implementation of activities in the SAR and are included in the register of SAR participants as a result of their state registration. To date, 35 international companies and 1 international fund are included in the register of SAR participants on the territory of Oktyabrsky Island (Kaliningrad Region). Some of the largest companies re-registered in the SAR are:
- public company En + Group;
- public company RUSAL;
- one of the structures of the largest development and construction group of companies PIK;
- a holding structure of one of the largest enterprises of the agro-industrial complex "Sodruzhestvo".
- the international fund "Public Interest Fund" created by Yandex.
To date, the SAR members have created about 70 new jobs, including managers and top-level specialists; permanent offices of international companies have been opened on the territory of Oktyabrsky Island.
The investments of the SAR participants in the Russian economy in 2019-2020 amounted to more than 50 billion rubles.
Tax revenues from the SAR participants in the 1st half of 2020 amounted to over 200 million rubles, 130 of which went to the regional budget. Assessment for the 2nd half of 2020 - 425 million rubles, incl. 137 million rubles to the regional budget. Forecast for 2021 - 550 million rubles of tax deductions, incl. 350 million rubles to the budget of the Kaliningrad region.
Taking into account the existing law enforcement practice, as well as in order to improve the efficiency of the ATS, the Corporation continuously analyzes the current legislation in this area, forms and, together with the Government of the Kaliningrad Region, sends motivated proposals to improve the legal and regulatory framework governing the activities of business entities in the SAR.
Today, the Corporation has ensured an accessible exchange of information between applicants and the region, continuously advises representatives of foreign companies, and provides the possibility of legal support for individual stages of redomiciliation. Currently, there is a significant increase in the activity of foreign companies wishing to re-register in special administrative regions. The management company has built an open dialogue with stakeholders. To date, applicants have access to all the necessary information about special administrative regions, there is a worked out procedure for the actions of the companies being re-domiciled, the formation of a sufficient regulatory and legal framework has been completed.
The corporation intends to continue actions aimed at attracting new members of the SAR, while simultaneously expanding the circle of persons who can be registered within the special administrative region. Among the priority areas of the Corporation's activities as a SAR management company in 2021 will be, first of all, work to attract investments from SAR participants to the region, participate in the creation of a competitive tax regime in comparison with popular offshore jurisdictions in order to attract qualitatively new categories of companies, as well as create favorable conditions for the economic activity of registered participants of the SAR.
Changes to federal legislation are expected in 2021 to allow companies from a wider range of foreign jurisdictions to re-register to special administrative regions. So, a special administrative region on the territory of Oktyabrsky Island (Kaliningrad region) next year will probably be able to accept companies from such jurisdictions as the British Virgin Islands and Belize.
Registration of international companies in a special administrative region on the territory of Oktyabrsky Island means not only the emergence of new tax residents, the creation of jobs in the Kaliningrad region and investment in the economy of the region and the Russian Federation, in general, but also creates the preconditions for the transfer of certain elements of large holding structures from Russian and foreign capital to the territory of the Kaliningrad region.