A SEZ is a territory with a special regime for entrepreneurial activity, but not a universal package of identical benefits. The zone type, region, investment project and resident agreement determine the permissible activities, infrastructure, obligations and economics.
- The federal law distinguishes industrial-production, technology-innovation, tourist-recreational and port SEZs.
- The company becomes a resident after the project is approved, an agreement is concluded and entered into the register.
- Tax rates and regional incentives vary and are checked based on the specific zone and project date.
- A free customs zone is not useful for every project and requires separate accounting of goods and transactions.
- SEZs must be distinguished from SARs, territories of advanced development, Skolkovo and other special regimes.
01
Four types of SEZ
Factories, processing, logistics and capital-intensive production.
Development, technology, software, R&D and commercialization.
Hotels, resorts, tourism, sports and recreational infrastructure.
Port, airport, logistics and related activities.
02
How to choose a zone
It is not advertising rates that are compared, but the availability of land and capacity, transport, personnel, sales market, acceptable OKVED, construction time, investment minimum, regional measures and management company. For imported equipment, the customs regime and subsequent export or release are separately modeled.
The benefit is considered together with rent, connection, capex, logistics, localization, commissioning deadlines and liability for failure to fulfill the agreement.
03
Resident status
- 01Concept
Product, market, site, investment and jobs.
- 02Business plan
Schedule, funding, metrics and infrastructure.
- 03Consideration
Application, expert assessment and decision of authorized bodies.
- 04Agreement
Activities, investments, land, facilities and timing.
- 05Register
Status, project launch and KPI implementation.
04
Benefits and infrastructure
Reduced regional income tax rates, benefits on property, land and transport, accelerated provision of a site and ready-made engineering infrastructure are possible. Recruitment, terms and conditions are established by the Tax Code of the Russian Federation, regional legislation and documents of a specific SEZ.
The rate from the presentation of one SEZ is not automatically applied to another. The type of income, property, date of registration and fulfillment of conditions are checked.
05
Free customs zone
Goods can be placed and used within the SEZ under a special customs procedure without paying separate fees, provided that the conditions are met. Site equipment, identification, recording, reporting and correct completion of the procedure are required.
If raw materials or products move outside the zone, payments, origins and documents are calculated in advance. Customs savings should not block the normal operating model.
06
Agreement and project control
The agreement sets out the activities, volume and timing of capital investments, creation of facilities and other indicators. A change in business model, delay in funding or replacement of a site requires an analysis of amendments and consequences.
Corporate documents, financing, EPC/contracting, equipment supply, land, permits and insurance are aligned with the milestones of the agreement.
07
SEZ or other regime
An innovative regime may be suitable for a high-tech project, for a remote territory - a priority development area, for an international group - an SAR, for joint ownership of assets - a closed-end mutual fund. Sometimes a regular regional platform with an investment agreement is more correct.
The selection is made by business function and total cost of compliance, not by the word “benefit.”
08
Documents for the first discussion
- 01
Description of the product and technological process.
- 02
Investment budget and sources of financing.
- 03
Requirements for land, power, water and logistics.
- 04
Construction schedule and reaching design capacity.
- 05
Staff, qualifications and jobs.
- 06
Imported equipment and commodity flows.
- 07
Corporate structure and beneficiaries.
- 08
Expected taxes and requested support measures.