Publications / 21.01.2021

Reform is being prepared for Russian offshore companies / Izvestia.Ru

Residents of special administrative districts (SAD), or the so-called Russian offshores on the islands of Russky and Oktyabrsky, will be offered additional benefits in exchange for investment. In particular, the tax rate on the withdrawal of capital is 10% instead of 15%, but subject to the condition that the company invests 300 million roubles in infrastructure development in the territory, as well as providing at least 15 jobs there. The draft law of the Ministry of Finance is at the disposal of Izvestia. The reform of the SAD is connected, among other things, with the fact that now companies registered there do not have a real presence, remaining residents of the islands only on paper, a source close to the Cabinet of Ministers told Izvestia. Some experts believe that the requirements for entering the SAD are overstated and will rather scare off many companies. Others believe that the reform is aimed at attracting businessmen to Russia on a large scale.

Andrey Gusev, Managing Partner at Borenius Russia, commented for Izvestia on what aims lie behind this draft law.

Read the full article (in Russian)

 

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