Territories of advanced development

Territories of advanced social and economic development in the Far East District are created in order to create comfortable conditions not only for living, but for business as well.

What is TAD?

In fact, territories of advanced social and economic development (TASED, TAD) are new, modernized format of advanced development zones, taking into consideration regional peculiarities, and representing maximum comfortable conditions for building successful business and production of competitive products.

These territories are created for 70 ears, however this term can be prolonged by the decision of the Government of the RF. Up to 2018 creation of territories of advanced social and economic development will be possible only in the Fr East and in a range of mono-cities.

Questions of creation and regulation of TAD activity are solved in accordance with the Federal Law "Concerning territories of advanced social and economic development in the Russian Federation", approved on December 29, 2014 and came into effect on March 30, 2015.

How can be a resident of TAD?

Any organization can become a resident of the territory of advanced development as long as it is registered in it and meets a range of requirements:

Banks, insurance organizations, pension funds, professional members of stock exchange and clearance companies cannot pretend to get resident status.

What are the advantages of TAD?

  • Emphasis on investor's interests

Special position of the territories of advanced development means application of a range of currently existing legal practices, significantly reducing expenses associated with business or other activity. Even compared to special economic zones introduced in 2005 the territories of advanced social and economic development have a range of advantages.

Unlike SEZ the territories of advanced development are not divided into predetermined types by industries, what allows to develop production of maximum needed and competitive goods in them. Rules for TAD selection are maximum flexible and key criteria of belonging territory to TAD is demand on the part of investors. All infrastructure as well as mechanisms of legal regulation are developed taking into account needs and interests of anchor investor.

  • Reduction of tax burden

Territories' residents are free from estate and land taxes, tax rate for organization's profit and minimal volumes of insurance contributions (into Pension fund, Social insurance fund and the Federal fund of CHI) is reduced for them.

Tariffs of taxes and insurance contributions for TAD, SEZ and other organization in RF

Tax

TAD

SEZ

RF

Profit tax

5% - 10%

13.5%

20%

Estate tax

0%

0%

2.2%

Land tax

0%

0%

1.5%

Insurance contributions

7.6%

14%

30%

Creation of own customs controlled areas and application of free customs zone procedure is allowed in the territory of advanced social and economic development. It means that TAD residents are free from tax and customs duties payments while import of materials, raw material and other goods needed for production into the territory of advanced development.

  • Reduction of administrative load

Measures to reduce administrative load are also foreseen for TAD residents. For example, thy include reduction of term for regular checks up to 15 business days (in exceptional cases term can be prolonged for not more than 10 days), simplified process of connection to utility networks.

Concerning attraction of foreign labor force to work in the territory of advanced development, work permits for employers-residents is not required, and invitations and work permits for employees are issued without any quotes.

  • Single window system

Problem of appeal to multiple authorities will be completely solved within TADs. For this establishment of administration company, conducting amongst other things role of multifunctional center for rendering state and municipal services by "single window" system is foreseen. Thus all administrative and economy matters will be solved directly in the territory of advanced social and economic development through a single organization.

All measures allow investors to reduce term of projects' ROI and tio reduce bare cost of producing goods.