The State Duma is preparing a package of bills on the actual introduction of an offshore regime in Crimea. The author is Deputy Chairman of the Chamber Committee on International Affairs Alexey Chepa, Kommersant reports.
Subscribe to PolitNavigator news at Telegram, Facebook, Classmates or In contact with
The publication notes. that now there is a free economic zone in Crimea and Sevastopol, but it is focused mainly on local business, although back in 2014 the then existing Ministry of Crimea proposed creating an offshore zone on the peninsula with the possibility of applying foreign law on its territory.
Then, due to sanctions, the idea was abandoned, but today it has appeared in a new incarnation.
“The first bill represents amendments to the Tax Code, the second to the Civil Code and a dozen more laws. The Civil Code proposes to legalize a new type of limited liability company - “International company”, as well as to introduce articles “International trusts” (an organization and trust funds transferred to it by other persons) and “Family foundations” (an organization created to manage the property of the creator of the fund , his family “or other specific persons indicated by him”). According to the amendments, these three forms must be registered for tax purposes at the place of effective management (real location) - if it is located outside the borders of the Russian Federation, then they will be recognized as non-residents, that is, they will be removed from fiscal control,” Kommersant points out.
At the same time, the publication explains that it is trusts that must provide investors in Crimea with anonymity, since with ordinary trust management the owner of the assets is known, while Crimean trusts, as planned, should receive rights to the assets transferred to them, which will allow the beneficiary to become invisible, but remain with income.
“To distribute benefits, it was proposed to introduce a chapter on the “International Transit Zone” into the current law on the Crimean SEZ - these are separate sections of the free port territory with a special regime for doing business. However, against the backdrop of trusts, tax benefits are not very impressive - they are already available in SEZs to a lesser extent. According to the amendments, income of residents from sources in the International Transit Zone is completely exempt from VAT, income and property taxes. By analogy with “wild” offshore companies, zone participants were asked to pay only an annual tax fee of €1,5 thousand. For income of residents received in the rest of the Russian Federation, preferential rates were offered: for dividends - 15%, for interest and royalties - 0% ”, the newspaper continues.
Also in Crimea and Sevastopol they want to allow activities that are impossible in the rest of the Russian Federation: foreign banks, insurance companies, pension funds and brokerage companies are offered the opportunity to operate without a license (if they have one in their state).
“In addition, a simplified procedure for obtaining Russian citizenship is provided for investors who have invested €1 million or more in bonds of Crimea and Sevastopol; foreigners who came to the peninsula are offered a visa-free regime. Another bonus is the removal of operations in the International Transit Zone from currency control,” the publication writes.
“We are not introducing an offshore, but are fighting sanctions that may threaten businesses operating in Crimea,” Alexey Chepa commented on his initiative, saying that the bill has not yet been submitted to the State Duma.
In turn, Deputy Prime Minister of Crimea Georgy Muradov called trust forms of doing business generally accepted, noting that every large state “has similar havens.” As examples, he cited the state of Delaware (USA), the Virgin Islands (UK) and Hong Kong (China).
“The task is not easy, because it is unusual. It’s difficult to say how quickly this work will take place, but there is an intention to accept the document. I hope it will also help our large companies, for example, banks that are embarrassed to work in Crimea,” said Muradov.