Omsk Region Government portal: Residents of the Omsk special economic zone "Avangard" will receive tax preferences

The Government of the Omsk Region has developed proposals to increase the investment prospects of SEZ.

The Governor Alexander Burkov held a working group meeting today on the subject of the organization the special industrial-production economic zone in the region. Its establishment has entered the final lap. The issues related to the land, financial and organizational aspects were resolved. The agreements of intent are in the process of signing with the potential residents. The proposed projects have been agreed upon by all the parties and now it is only a matter of their official confirmation. It is planned to submit an application for the establishment of SEZ to the Ministry of Economic Development in April 2020. The federal consultant in this matter is the Association for the Development of Clusters and Technology parks of Russia.

“We invest our great hopes in the special economic zone, particularly as regards to the petrochemical processes and low-tonnage production development. In this way we plan to bring not only large enterprises to this site, but also medium and small-sized businesses. We need new players in this market, provided that they are legal. We decided to name the special economic zone «Avangard». Its establishment will allow our region to enhance its positions to a great extent and to become a  leader in many sectors” - Governor Alexander Burkov emphasized.

The special economic zone is authorized by a special legal status and organized for 49 years. The zone territory is 498 hectares and it includes two sites near the Krasnoyarsk tract and on the Kombinatskaya Street. The preferential business regime will imply on this part of the territory, and also the duty-free customs treatment can be applied.

The Omsk Region Government formulated the tax preferences proposals for the SEZ investment prospects. The Ministry of Economics represented them on the working group meeting. This is the tax remission of the corporate property for up to 10 years; the transport tax is for up to 10 years and the land tax up to 5 years.

«It is also proposed to set reduced rates for income tax of the part to be credited to the Omsk region budget, - said Deputy Minister of Economy Denis Kushner. Zero percent for 5 years from the first income, 5 percent from the 6th to the 10th year after the first income and 13.5 percent at the end of 10 years after the first income».

In spite of the stipulated benefits just the residents themselves who has already expressed their intentions for the implementation of the projects in the special zone "Avangard" will transfer about 3.4 billion rubles to the budgets at all levels over a ten-year period. It is expected that the volume of the investments in fix assets of the projects proposed for placement in the SEZ will exceed 22 billion rubles. As a result of the projects implementation it is planned to create approximately 800 new high-tech jobs. “Gazprom Neft” PJSC, “Titan” JSC and “Osnova Holding” GC JSC have already announced their intentions to participate in the special economic zone establishment as the anchor residents. Each company announced its own project investment package related to the organization of industrial technology parks or new industries which are expected to engage the small and medium-sized businesses.

Governor Alexander Burkov decided that Omsk Region will a hundred percent participate in the asset management company of the Special Economic Zone “Avangard”. There are 100 million rubles in the budget of Omsk region provided for the generation of its authorized fund. The deed of incorporation is planned in the next two weeks.

Source: Omsk Region Government portal, 20.03.2020

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