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

Rent

A land plot shall be provided to the resident of the special economic zone for rent on favorable terms:

rent: max.: 35 856.00 RUR/ha
min.: 17 928.00 RUR/ha
redemption: 125 496.00 RUR/ha
7% of cadastral value
cadastral value per ha - RUR 1 792 800.00

Repayment

A resident of the special economic zone shall have the priority right to buy out the land plot within the special economic zone area.
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


Federal Law establishes the following privileges for SEZ resident organizations:

  1. exemption from property tax for 10 years
    (article 391, Tax Code of the Russian Federation).
  2. reduced social funds rates
    (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%)
    (FZ №212 of 24.07.2009 "On insurance premiums to the Pension Fund of the Russian Federation, Social Insurance Fund of the Russian Federation, and Federal Fund for Compulsory Medical Insurance”)
  3. 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).

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

Tax Normative act Total tax
rate
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)
18%
in the part of tax to be passed in the regional budget
SEZ residents shall be completely exempt from profit tax payment
5% for the next five years
13.5% beginning from the 16th tax period
during 10 taxation periods, beginning from the tax period in which taxable profit has first been received
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 ‘Titanium Valley’ SEZ resident organizations shall be exempt from transport tax, for which - after registration of these organizations as ‘Titanium Valley’ SEZ residents - transport vehicles are registered
for 11 consecutive tax periods, beginning from the tax period in which the vehicle has been registered to the ‘Titanium Valley’ SEZ resident
Land tax Decision of the Verhnesaldinsky regional Parliament of 15.11.2005 №66   ‘On the establishment of the land tax on Verhnesaldinsky region municipal area’ 1,5% resident organizations of ‘Titanium Valley’ SEZ shall be exempt from and tax in relation to land plots located on the ‘Titanium Valley’ SEZ territory for 10 years

When conducting activities on the site of ‘Titanium Valley’ SEZ, residents shall be guided by the following normative and legal regulations