The Federation Council approved today the law introducing special economic zones in the Russian Federation. The new term implies part of Russian territory with special customs and economic environment furthering business.
      
      
       The law provides for two types of zones: industrial and technical ones, situated on 20 and 2 sq km respectively. The right to be such a zone is granted for twenty years only. You cannot extend the favourable time period.
      
      
       Both residents and non-residents could run their businesses there. Tax incentives are laid down in the Tax Code already. Industrial zones allow for a higher than 30% shift of losses to the next fiscal year while technical zones provide for a lower – 14% – social tax. Residents of special economic zones would be exempt from land and property taxes during the starting five years. Goods could be imported by foreign producers without imports fees, and domestic products could be exported without exports fees.
      
      
       Within the first year, investments shall not be lower than ?1m, contributions within 10 years shall not drop lower than ?10m.
      
      
       Proposals to turn Chechnya into a specimen have so far met faint support. The government has clear rules to estimate projects submitted from Moscow, the Moscow Region, Novosibirsk, Tomsk and the Samara Region. The only region operating under the banner of a special zone is the Kaliningrad Region, closest to Europe, and surrounded by foreign countries.
      
      
       145 senators voted for the bill, 2 against, with no abstentions.