Bashkiria extended tax benefits for Alga SEZ residents

The preferential corporate income tax rate is extended for residents of the special economic zone of the industrial-production type "Alga". The deputies of the State Assembly of Bashkortostan adopted the corresponding bill today in the final reading.

“During the first five years from the moment of receiving the first profit from activities in the territory of the special economic zone, entrepreneurs are completely exempt from paying corporate income tax to be credited to the budget of Bashkortostan,” Chairman of the State Assembly Konstantin Tolkachev reminded. Then the current legislation provides for a five-year transitional period for them, during which the tax is levied of 5% of the profit. We are increasing the grace period from five to seven years.”

According to the Speaker of the Parliament, although it will result in a decrease in budget revenues at the initial stage, the tax break will ultimately be an incentive for the development of the real sector of the economy.

The law is sent for signature to the Head of Bashkortostan. It will come into force from the date of official publication.

SEZ "Alga" is a special economic zone of industrial production with a special regime of entrepreneurial activity in the form of preferential tax, customs, and administrative conditions for residents. It was created on the territory of the Ishimbaysky and Sterlitamaksky regions. It consists of four separate sites with a total area of ​​468 hectares. Enterprises are placed according to a cluster type grouped according to three parameters: industry affiliation, raw material base, and technology similarity.

Today, 10 companies with a total declared investment volume of over 23 billion rubles are residents of the Alga SEZ.

In 2020–2021, 623 million rubles were allocated from the republican budget for the Alga SEZ development, and another 603.5 million rubles in the first quarter of 2022. The funds are invested in infrastructure development.

Author: Azat Gizzatullin