Russia’s government has given its okay to a draft of a law that is likely to create tax breaks for Russian aquaculture operations.
In 2014, Russia created a “territories of accelerated development” (TAD) designation as a tool to stimulate industrial development production in economically-depressed regions, including the Russian Far East.
Businesses expanding in TAD-designated areas were awarded much lower tax rates and other federal payment exemptions. Companies located in TADs pay no taxes for their first five years of existence, and five percent for subsequent years, against the typical rate of 20 percent. Capital tax is also zero percent against the standard 2.2 percent. Companies are also permitted loosened procedures of employment for foreign laborers and are protected from excessive advisor control and bureaucratic pressure.
Thus far, the program has been a success, with a number of companies, including several large foreign corporations, growing their investments in TAD areas.
Last week, the Ministry of Far East Development introduced a draft of a bill expand TAD designation eligibility to water bodies, thus making them eligible for tax reductions. In a meeting of senior government officials, Russian Prime Minister Dmitry Medvedev endorsed the bill.
“This will boost the development of aquaculture and other activities,” he said.
The bill now moves to the State Duma, the lower chamber of the Russian Parliament, where it is likely to be approved. This may occur during the spring session of the Duma in early 2019, meaning the bill will be ready for the probable signature of President Vladimir Putin by spring or summer of next year.
