Putin signs laws on tax-free zones in Russia
Russian President Vladimir Putin signed a package of laws on the establishment of special administrative regions (SAR) on the Russky Island in the Primorsky Territory and Kaliningrad Region. Relevant documents have been published on the website of the Russian Government's legal information.
According to the adopted laws, only foreign legal entities will be allowed to apply for residency on the islands. The law provides for the procedure of re-domiciliation (change of the legal address from one jurisdiction to another) provided that the company was established before January 1, 2018, and the controlling persons took office no later than January 1, 2017. The minimum investment in the territory of Russia must be at least 50 million rubles ($790,000 USD) within half a year. There will be no special tax rates for income in the form of dividends by foreign companies.
The law was passed by the State Duma during the third reading on July 26. The initiators of the bill were deputies and senators from the Primorsky Krai and the Kaliningrad Region.