The Primorsky krai, which is one of Russia’s far eastern regions, is among the first to extend tax privileges to significant investors. The territorial legislature amended regional laws to provide substantial tax breaks to commercial entities and natural persons investing a considerable amount of money in the region effective January 2014. As such, corporations whose projects result in the creation of high-efficiency jobs will be relieved from the assessment of income taxes, as well as property taxes for a term of five years.

The tax breaks and incentives are to be in force for all enterprises that began their operations in the Primorsky krai on or after January 1, 2013. The minimum investment commitment for the privileges to apply is RUR150 million in three years or RUR500 million in five years. The figures are equivalent to USD4.56 million and USD15.18 million respectively. Moreover, to qualify for the benefits, the projects initiated must come from priority economic areas, including the chemical industry, the electricity generation and distribution sector, farming, fishing, the mineral processing industry, and mining.

According to Viktor Gorchakov, the speaker of the territorial legislative assembly, the Primorsky krai is among the first in Russia to grant such tax incentives that are targeted at improving the investment situation in the region and at attracting businesses to the region. According to the Primorsky krai’s Governor Vladimir Miklushevsky, the tax benefits offered will ensure that the new businesses starting their operations in the region enjoy competitive advantages. The Governor is convinced that the year 2014 will witness a giant leap forward for territorial development.