Favourable Tax Regime in the Territory of the SEZ in the Kaliningrad Region

From 1 January 2018, in the territory of the special economic zone (SEZ) in the Kaliningrad region new tax incentives will apply, in particular:

-       zero VAT rate for domestic air transport services with a point of departure or destination located in the territory of the Kaliningrad region;

-      exemption from excise taxation for certain transactions with excisable goods; the specifics of the calculation and payment of excise duty in the release of excisable goods for domestic use are established;

-       the corporate profit tax rate will be 0% during 6 tax periods starting from the period where the first profit was received from the implementation of an investment project and 10% - during the next 6 tax periods;

-       reduced tariffs of social insurance contributions for payers included in the register of SEZ residents in the Kaliningrad region for the period up to 2025 inclusive, subject to statutory specifics, are introduced.

(Federal Law No. 353-FZ dated 27/11/2017).