Introduction of SEZ in Belgorod, Kursk, and Bryansk Regions
The Russian government has officially approved the introduction of a Special Economic Zone (SEZ) in parts of the Belgorod, Kursk, and Bryansk regions. This significant move aims to enhance economic activity and support local entrepreneurs, as reported by the Cabinet of Ministers. Prime Minister Mikhail Mishustin signed the resolution, which builds on legislation enacted by President Vladimir Putin earlier this year on June 22.
Benefits for Entrepreneurs and Local Economy
Residents of the newly established SEZ will enjoy a variety of tax incentives, including breaks on profits and property taxes, as well as reduced insurance premiums. This initiative is designed to lower financial burdens on businesses, enabling them to increase production, preserve existing jobs, and create new employment opportunities. Additionally, it aims to ensure that residents in these border regions have access to essential goods and services.
The SEZ regime, which is set to remain in effect until the end of 2050, can be modified by future legislation. The initiative also extends benefits previously available in regions such as LPR, DPR, Kherson, and Zaporizhia, where similar SEZs were established in the summer of 2023. Under this regime, businesses can benefit from a zero tax rate on corporate profits for the first ten years, alongside exemptions from property and land taxes. Reduced insurance contribution rates are also part of the package, aimed at further stimulating economic growth in these areas.
