Legislation of SEZ "Alabuga"

The Special Economic Industrial Zone Alabuga (the SEZ) was created by virtue of the Russian Federation Government Order No 784, d-d 21 December, 2005.

The SEZ offers favorable investment conditions for resident companies.

The main advantages are:

  • tax incentives;
  • customs preferences;
  • special procedure of state control of residents;
  • special procedure of governmental services (One Stop Shop).

Commercial activities of special economic zones are subject to legislation. The government is fully aware of the perspectives and potential of special economic zones, therefore, all the conditions provided for residents are formalized in legislation.

The main documents is Federal Law No 116-FZ, d-d 22 July, 2005, “On Special Economic Zones in the Russian Federation”. The law contains basic provisions for special economic zones, its' management, conditions for residents; clarifies the notion of free customs regime; provides a range of government guarantees.

By virtue of and in accordance with Federal Law No 116-FZ amendments were made to the Tax Code, Customs Code, Land Code and other basic federal laws. Separate matters are regulated by corresponding legislation of the subjects of the Russian Federation, particularly by the law “On Creation of a Special Economic Zone in the Elabuga District”, 116-FZ, where central attention is drawn to:

  • Customs Code
  • Land Code
  • Tax Code

Law of the Republic of Tatarstan No 5-ZRT “On Setting an Income Tax Rate for Residents of the Special Economic Industrial Zone in Elabuga District of the Republic of Tatarstan.”

It is necessary to note, that a company is allowed to operate in the SEZ without obtaining resident status, but in that case the company will not be able to apply for mentioned preferences and special conditions.

To obtain resident status a company must:

  • be registered in specified area (Elabuga district in the Republic of Tatarstan);
  • apply for resident status and submit the business-plan,
  • invest not less than 3 mln euro in the project;
  • invest not less then 1 mln euro during the first year.
Elabuga-City (?)