Kaluga region SEZ “Lyudinovo” special economic zone area
On December 31, 2012 Russian Prime Minister Dmitry Medvedev signed a decree to establish Lyudinovo industrial special economic zone. Pursuant to a regulation of the government each special economic zone has a special legal status. Thus, its residents enjoy a number of tax and customs benefits and have a guaranteed access to utilities, transport and business infrastructure.
The area of Lyudinovo special economic zone equals 316 ha. The land plot is located at a 0.1 km distance from Lyudinovo, near Voylovo, Lyudinovo District, Kaluga Region.
According to preliminary expert estimates, the total cost of the project will be around RUR 3,200 million.
The project is to be financed out of Kaluga Region and federal budget funds. Kaluga Region will invest RUR 600 million (19% of the total cost of works), and the federal government will invest RUR 2,600 million (81%).
Number of Residents
A number of Russian and foreign companies are included in the list of potential Lyudinovo special economic zone residents. Two investment applications were submitted as of September 2012 (Magnat and Farmakom MB). The aggregated amount of investments equals RUR 9.2 billion, 860 new jobs are to be created.
By 2021, when all Lyudinivo special economic zone sites are to be occupied, about 22 production facilities will be fully operational and 3,900 new jobs will be created.
The site is located at a 60-km distance from A-101 Moscow-Maloyaroslavets-Roslavl highway and at a 30-km distance from M-3 Ukraine federal highway.
There is Lyudinovo-Zhizdra-M3 Ukraine through road along the southern border of the site (0.02 km) connecting Bryansk-Lyudinovo-Kirov road with A-101 Moscow-Maloyaroslavets-Roslavl M-3 Ukraine highways.
The density of paved public federal and regional roads in Lyudinovo District equals 16 km per 100 km².
Lyudinovo is located at Vyazma-Fayansovaya-Bryansk single-track railway. There are two railway stations in Lyudinovo: Lyudinovo-1 (Class III) and Lyudinovo-2 (Class IV).
Lyudinovo-1 serves all industrial facilities. The distance between Lyudinovo-1 and the site border is 5.0 km.
There are no commercial airports within the 80-km radius from Lyudinovo. Bryansk commercial airport is located in Bryansk (at a 100-110-km distance from Lyudinovo).
There are no water and sewage systems on-site.
Possible water system draw-off point (municipal water supply system) is located at a 1.6 km distance (north-westward direction). Water supply system design capacity is 32,000 m³/day, current consumption – 17,000 m³/day.
The nearest sewage pipeline is located at Industrialnaya St. The draw-off point (pump station) is located on the border of Remputmash KZ OAO facility at a distance of 1.2 km from the site.
The capacity of the existing water treatment facilities equals 22,000 m³/сутки, current load – 17,000 m³/day (up to 20,000 m³/day in case of rainy weather).
It is planned to ensure power supply to the site from Tula power system through Liteynaya substation (220/110/10 kW). Liteynaya substation installed capacity is 2х200 MW, the current utilization factor – 30% of the installed capacity. Distance to Liteynaya substation – 3.5 km.
There is a high pressure gas pipeline at a 3.5-km distance from the site. The gas distribution plant is located at a 4.0-km distance. The capacity of the gas distribution plant is 80,000 m³/hour, the current load is 30 m³/hour. There is a medium pressure gas pipeline (d=219 mm, pressure 0.6 MPa) along Industrialnaya St. The gas supply system draw-off point is located at a 1.2-km distance.
The following formula is applied to calculate lease costs under agreements concluded with legal entities and individual entrepreneurs registered as Lyudinovo industrial special economic zone residents:
LP1 = Рmax x Ki, where
LP1 – lease payment under a lease agreement concluded with legal entities registered as Lyudinovo industrial special economic zone residents;
Рmax – maximum amount of lease for land plots, i.e. 2 per cent of their cadastre value per annum;
Ki – coefficient impacting the amount of the lease payment for Lyudinovo special economic zone residents, namely:
for residents making capital investments in Russian rubles in the amount of not less than EUR 10 (ten) million (excluding intangible assets) – 0.9;
for residents making capital investments in Russian rubles in the amount of not less than EUR 20 (twenty) million (excluding intangible assets) – 0.7;
for residents making capital investments in Russian rubles in the amount of not less than EUR 30 (thirty) million (excluding intangible assets) – 0.5.
The above coefficients shall be unchanged for a period of 5 (five) years from the date of their first application to calculate the lease payments under the lease agreements.
(Order of the Ministry for Economic Development of the Russian Federation No. 190 of July 14, 2006)
Cadastre land value as of December 1, 2012 – RUR 1,331,121,615.12.
Land plot acquisition
Lessees of land plots located inside the special economic zone territory, who own newly built property, shall have a right to acquire land plots under their facilities. The price of the land plot shall be determined by the land plot owner pursuant to the Land Code of the Russian Federation.
The price of the acquired land plot equals 15% of its cadastre value.
The cost of 1 ha of land plot in the special economic zone territory is RUR 4,437,072 (as of December 1, 2012).
Infrastructure facilities to be built
The following infrastructure facilities are to be built within the framework of Lyudinovo special economic zone creation project:
External (off-site) infrastructure:
- double circuit line (110 kW, 63 MVA, 10 km);
- substation 110/20, 63 MVA, two sections with a single distributing point RP-20 kV, 20 MW, up to 10 consumers;
- water supply line, length – 5 km, dia 300 mm, capacity – 10,000 m3/day, including 3 (three) switching chambers and a flow metering unit;
- water discharge network (industrial and domestic effluents), including the sewage collector: length – 5 km, dia 300 mm, capacity -10,000 m3/day, pressure-type, including the pump station, as well as the pump station power supply and construction of 2хTS-160kVA-20/0.4 kW;
- Treatment facilities for the industrial and domestic effluents, capacity: 10,000 m3/day;
- medium-pressure gas pipeline, dia 159 mm, length – 2 km, capacity 130 million m3/annum, including a gas distribution station and an access road;
- storm water collector, dia 2,000 mm, with two discharges with the length of 1.5 km each, capacity – 20 m3/s;
- storm water treatment facilities: gabion filtering treatment facilities (2), two-section, effluent treatment to comply with regulations for fishery water bodies, with relevant access road for maintenance;
- access railways (2.5 km length);
- access road.
Internal (on-site) infrastructure:
- site (45 ha) grading and leveling;
- DP-20 kW, 20 MW, Reliability Category II, up to 10 consumers (2);
- Ring two-pipe water supply line, dia 300 mm, length – 6 km, 4 (four) switching chambers;
- self-drained/pumped sewage collector, dia 300 mm, construction of two sewage pumping stations, power supply from 2хTS-250kVA-20/0.4 kW;
- gas supply networks, length – 6 km, dia 159 mm, with installation of section taps and cathodic protection;
- storm water collector, dia 2 000 мм, length – 6 km;
- on-site roads and passes (Category IV), total length – about 6 km;
- on-site railways, total length – about 5 km;
- chain link fencing (length – 10,500 m);
- customs post and administrative buildings.
Tax rate (incl. tax breaks)
Tax break validity term
|1.||Corporate income tax(tax component payable to the federal budget – current rate: 2 %; component payable to the regional budget – current rate: 18%)||
For special economic zone residents the tax rate component payable to the regional budget may be decreased and cannot be higher than 13.5 %
Determined by the regional law
para.1., Art. 284 of the Tax Code of the Russian Federation
Other benefits to be taken into account when calculating the corporate income tax for the entire duration of the special economic zone existence (49 years).
R&D costs, including costs associated with unsuccessful R&D projects shall be recorded in the reporting (tax) period when they were borne (actual sum of relevant costs).
Additional coefficient is applied to the depreciation rate (not higher than 2) in respect of fixed assets depreciation.
(para.2, Art.262, item3, para.1, Art. 259.3 of the Tax Code of the Russian Federation)
|Corporate property tax(tax rates are determined in accordance with the law of the relevant region of the Russian Federation and cannot be higher than 2.2 %)
|Special economic zone residents are relieved of the corporate property tax provided that the relevant property:
10 years from the date of the relevant property official registration
The benefit validity term may be extended by the law of the region of the Russian Federation
|para.17, Art. 381 of the Tax Code of the Russian Federation
(current rate –
The special economic zone residents are relieved from paying the land tax (in relation to the land plots located in the territory of the special economic zone)
5 years from the date of official registration of a title to the land plot
The benefit validity term may be extended by the law of the region of the Russian Federation
para.9 Art. 395 of the Tax Code of the Russian Federation
Value Added Tax and Customs Duties
Special economic zones residents may apply customs procedures relieving them from paying customs duties and taxes for the goods placed and used in the territory of the special economic zone.
Additional special economic zone benefits
The personal income tax of foreign nationals belonging to the category of highly-qualified personnel employed by special economic zone residents equals 13% (para. 3, Art. 224 of the tax code of the Russian Federation). The personal income tax rate for foreign nationals who are not tax residents of the Russian Federation is 30%. Individuals who reside in the territory of the Russian Federation for at least 183 days in a year belong to the category of tax residents.
Guarantees against negative changes in tax legislation
Legislation acts on taxation shall not apply to special economic zone residents throughout the validity term of the agreement on industrial and production activities in case they negatively impact the taxpayers, residents of special economic zones (however, this provision does not apply to excise goods manufacturers) (Article 38 of Federal Law On special economic zones in the Russian Federation No. 116 of July 22, 2005)
Social and economic effects of the project implementation for 10 years (2013-2023):
3,900 jobs are to be created;
RUR 33.6 billion of investments are to be attracted;
Total output of Lyudinovo special economic zone enterprises is to be RUR 87 billion;
Tax proceeds to be received by budgets of different levels will be RUR 7.8 billion, including :
· federal budget – RUR 3.9 billion;
· Kaluga Region budget – RUR3.6 billion;
· Lyudinovo and Lyudinovo District municipality budget – RUR0.3 billion.
Representative office of the region of Kaluga at the Federal Government of. Russia
Tel./Fax: +7 499 241 6636. E-mail: firstname.lastname@example.org