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Priority Social and Economic Development Area (PSEDA) is a territory with a special legal status for doing business, offering a number of tax incentives and administrative preferences for investors.
The purpose for PSEDA is to create a welcoming environment for investment, facilitate accelerated social and economic development and provide comfortable living conditions for the population.
PSEDAs are regulated by Federal Law No. 473-FZ of December 29, 2014 On Priority Social and Economic Development Areas.
As of April 23, 2019, the following figures for Khabarovsk Kray are valid:
106 applications for doing business in PSEDA have been filed
Total stated amount of investment: RUB 180.5 billion
Expected number of new jobs: 11,220.
60 companies have obtained a PSEDA resident status.
Amount of investment under the agreements concluded: RUB 60.6 billion
Number of new jobs to be created: 6.724.
The residents have actually invested RUB 15.5 billion over the period of PSEDA existence
Tax payments in the amount of RUB 1022.3 million have been made.
7.6% - Lowered social welfare contributions on investment projects over 10 years
0% - Income tax over the first 5 years, 13% - over the next 5 years
0% - Land tax over the first 3 years;
0% - Property tax over the first 5 years, 1.1% - over the next 5 years;
10 days – Accelerated VAT refund procedure;
Administrative and customs preferences:
- One-stop-shop approach for an investor
- Available infrastructure
- Reduced time for resident audits
- Management company’s right to plead residents’ cases before court
- Regime of free customs zone (Read more)
- Simplified conditions to engage workforce (Read more)
- Off-quota foreign worker employment under the decision of the PSEDA Supervisory Board (Read more)
Step 1. Make sure you meet eligibility criteria of PSEDA resuident:
Step 2. Prepare the documentation package required:
- Copies of foundation documents (for legal entities);
- Business plan in the prescribed format;
- Copy of the State Registration Certificate for a legal entity or a sole proprietor;
- Copy of the Certificate of Registration with Tax Authorities;
- Duly certified Russian translation of the certificate of legal entity’s or sole proprietor’s registration under the laws of the state concerned (for foreign entities).
Step 3. Apply for PSEDA resident status: