For the Resident

The operating company of ‘TITANIUM VALLEY’ SEZ OJSC offers
residents a complex of construction,
operating and administration services

  1. construction supervision and technical oversight of construction works, and preparing technical assignments for contractors
  2. provision of engineering survey results, which have received positive outcomes in state examinations concerning the residents’ land plots
  3. performing technical client functions
  4. construction of production facilities (for subsequent rental); outfitting and arrangement of protective perimeter fencing of land plots; installation works
  1. provision of fuel and energy resources
  2. maintenance of electric power supply, water supply, heating, and sewerage systems
  3. maintenance of engineering and technical networks in residents’ premises
  4. communication and other operational services
  1. rental of presentation premises in the information pavilion building
  2. rental of industrial premises with the possibility of subsequent acquisition, and other maintenance services
  1. selection, training and retraining of personnel for resident enterprises
  2. consulting services
  3. developing business plans for the investment project and subsequent submission to the Ministry of Economic Development of the Russian Federation and credit organizations
  4. follow-up of investment credit applications with credit organizations and other administrative services

  
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                  

LAND PLOTS

Rent and buyout a land plot shall be provided to the resident of the special economic zone for rent on favorable terms:


Kinds
use
  SALDA PLATFORM   UKTUS PLATFORM
land       State owned land

max.: 35 856.00 RUR/ha in year
min.: 17 928.00 RUR/ha in year

State owned land**
max..:44 330 RUR/ha in year
min.: 22 165 RUR/ha in year

Land Owned by SEZ "Titanium valley":
200 000 RUR/ha in month
buyout State owned land 


125 496 RUR/ha 
7% of cadastral value
State owned land**
from 155 155 RUR/ha 
7% of cadastral value**

Land Owned by SEZ "Titanium valley": 
The base cost is 30.5 million rubles / ha 

Reducing cost is determined by: 
- the volume of investments from 180 million rubles / ha, 
- created jobs - from 30 jobs 

The reduction factor applies to priority industries: 
- aircraft construction and components 
- mechanical engineering
- medical industry
* cadastral value per hectare Salda site: 1 792 800 rub. cadastral value per hectare Uktus site: 2,216,500 rubles - land within the borders of Sysert urban district, up to 19,907,407 rubles - land within the borders of Yekaterinburg, which are privately owned by Titanium Valley SEZ.
 ** land and buyout state owened land:
1. The procedure for determining the rent for land owned by the state. 
2.The repurchase price is determined by the Resolution of the Sverdlovsk Region of December 26, 2012 No. 1532-PP On approving the procedure for determining the price and payment for state-owned land plots of the Sverdlovsk region, or state-owned land plots for which are not demarcated when they are sold to owners of buildings and structures , facilities located on these land plots. 
This land purchase right shall arise for the resident from the time of acquisition of the property right to real estate constructed by him/her on the said land plot.(Order of the Ministry of Economic Development and Trade of the Russian Federation dated 12 April 2006 N 95;) 

Land-use categories of land plots located within the perimeter of ‘Titanium Valley’ special economic zone are lands used by industries, power-engineering facilities, transport, communication, broadcasting, TV, information systems; lands for space activities,lands of defense, security, and of other special-purpose use.

Production launching options

The operating company of ‘Titanium Valley’ SEZ OJSC offers 2 options for construction of industrial buildings for residents on the site of the special economic zone:

  1. Building construction independently by the resident
  2. Building construction by the ‘Titanium Valley’ operating company with subsequent leasing to the resident.
               


Building construction using the resources of the operating company with the option of subsequent buy-out of the industrial building will allow the resident to cut down and redistribute initial capital investments at the production initiation stage.


Furthermore, rental of ready-to-use industrial premises will allow the project realization procedure to be simplified in terms of obtaining permit documentation, and interaction with the contracted construction organizations.
Beside that, the resident shall be able to reduce its costs for organization of temporary works on the SEZ site, for organization of the customer service, and for temporary and human resources to be used for organizing construction and attracting financial resources.



                                                                                                                                                                                                                                                                                                                                                                                                                                                                           


More details about tax preferences

Tax advantages established by Federa and regional normative acts for ‘Titanium Valley’ SEZ residents

Tax Normative act Total tax
rate in Russian Federation
Tax rate beneficial
for ‘Titanium Valley’
SEZ residents
Tax
advantage
terms
Company profit tax Sverdlovsk Region Law of 29.11.2002 №42-OZ  
‘On the profit tax rate of certain tax-payer categories in Sverdlovsk Region’ (with amendments of 08.04.2013 № 26-OZ)

In the federal paid - 2%: p. 1.2-1 Art. 284 (as amended by the Federal Law of November 27, 2017 N 348-ФЗ) applies to legal relations arising from January 1, 2017.

20%
in the part of tax to be passed in the regional budget
2% during 10 taxation periods, beginning from the tax period when taxable profit has first been received
7% from 11 to 15 taxation periods
15,5% beginning from the 16th taxation period
Transport tax Sverdlovsk Region Law of 29.11.2002 №43-OZ  
“On establishment and introduction of transport tax on the territory of Sverdlovsk region”
depending upon the vehicle engine capacity the SEZ residents organizations shall be exempt from transport tax, for which - after registration of these organizations as residents - transport vehicles are registered
for 11 consecutive tax periods, beginning from the tax period in which the vehicle has been registered by residents
Land tax
Section 9 of Art. 395 of the Tax Code of the Russian Federation
1,5% resident organizations of SEZ shall be exempt from and tax in relation to land plots located on the SEZ territory for 5 years, beginning from which the ownership of the plot
Property tax pp 14, paragraph 2, article 3 of the Law of the Sverdlovsk region of November 27, 2003 N 35-OZ "On the establishment in the territory of the Sverdlovsk region of corporate property tax"); p.17. Article 381 of the Tax Code 2.2%
set up or acquired for the purpose of conducting activities in the SEZ, put on the balance of the organization as fixed assets           


for 10 taxation periods, beginning from the tax period in which the property is put on balance as a fixed asset

  1. Reduced social funds rates (article 427, Ch.34 p.2 Tax Code of the Russian Federation) only for residents that have concluded the Technology Development Activities Agreement:
    • 2011-2017 - 14% (instead of 34%)
    • 2018 - 21% (instead of 34%);
    • 2019 - 28% (instead of 34%)
  2. Possibility of applying for accelerated depreciation. An SEZ resident may apply for accelerated depreciation by establishing a multiplying factor (but not higher than 2) in relation to its principal equity (article 259.3 of sub-item 3 of item 1, Tax Code of the Russian Federation).
  3. R & D expenditures: including those that did not give a positive result are recognized in income tax expenses in the reporting period in which they were incurred in the amount of actual expenses (clause 2 of Article 262 of the Tax Code of the Russian Federation).
  4. 0% VAT: 
    • - when Russian raw materials and equipment are placed under the customs regime of the FCZ VAT (refundable)
    • - when selling goods placed under the customs regime of FCZ (sales within the SEZ) (paragraphs 1, item 2, Article 164 of the Tax Code of the Russian Federation)
    • - export of products (goods) from the territory of the SEZ
    • - when importing raw materials and equipment are placed under the customs regime of a free customs zone - then the FCZ (clause 2 of article 151 of the Tax Code of the Russian Federation)