Russian and international investors, including Japanese, will be entitled for tax, customs, and administrative advantages on the Kuril Islands, according to Russian President Vladimir Putin, speaking at the Eastern Economic Forum plenary session, TASS reports.
“I’d want to emphasize that not only local firms, but also international investors and, without a doubt, our neighbors, including our Japanese colleagues, will be eligible for tax, customs, and administrative advantages. We addressed this previously with them in terms of establishing conditions for economic growth on the islands and our collaboration there “, Putin explained.
The Russian president said that on the Kuril Islands, an unparalleled package of advantages and incentives for companies would be created, including a ten-year exemption from major income and property taxes, as well as land and transportation taxes. Putin said that the regulation would apply to businesses that were not only registered on the Kuril Islands but also operated in the area. Insurance payments for such businesses will be lowered to 7.6 percent for a period of 10 years.
Furthermore, Putin said that a duty-free zone arrangement would be established to encompass the whole Kuril Islands, with no value added tax applied “until products depart the Kurils.”
The advantages would be extended to all activities except the labor of mediators, the manufacture of excisable products, hydrocarbon extraction and processing, and the harvesting of important aquatic bio-resources, according to the head of state.
