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Municipal Support for Investors

Investors Privileges
1. Benefits in the lease provision of the municipal property land and not delimited plots established for individuals and legal entities, including small and medium-sized businesses.

NoSet privilegeRecipient categoryGrounds
1.Grace period in rental payments for municipal and not delimited lands The Russian Federation citizensMagadan Mayor regulation dated 26.12.2007 No. 3261 On Commission on Considering the Applications on Land Rent
2.Installment in rental payments for municipal and not delimited landsThe Russian Federation citizensMagadan Mayor regulation dated 26.12.2007 No. 3261 On Commission on Considering the Applications on Land Rent
3.Reduction of land rent payments for municipal and not delimited landsThe Russian Federation citizensMagadan Mayor regulation dated 26.12.2007 No. 3261 On Commission on Considering the Applications on Land Rent
4. Establishment of adjusting coefficient considering the type of land plot utilization when calculating the municipal land rental payment   Enterprises performing communal services and infrastructure   activity, sport and health centers, other enterprises not mentioned in the given list Magadan Mayor regulation dated от 07.12.2010. No.  3849 On Establishment of the Procedure to Determine Rental Payment for Land Plots in Magadan Municipality Property


The procedure for determining the amount of rent, procedures, conditions and terms of rent payment for utilization of land plots state ownership of which is not delimited, is approved by the Magadan region Government decree on 19.02.2015 No. 121-PP On Approval of the Procedure to Determine the Amount of Rental Payment, Order, Conditions and Timing of Rental Payments for Utilization of Land Plots with Non-Delimited State Ownership.

2. The benefits of the provision of the leased municipal property are set for individuals and legal entities, including small and medium-sized businesses.

Benefits at buyout of the leased municipal property are provided exclusively to small and medium-sized businesses fitting relevant requirements of the Federal Law No. 159-FZ dated 22 July 2008 On Peculiarities of the Alienation of State-Owned Immovable Property in the Constituent Territories of the Russian Federation or Municipal Property and Property Leased by Small and Medium-Sized Enterprises, and on Amendments to Certain Legislative Acts of the Russian Federation.

3. Exemptions for investors whose investment projects have received the approved status and are included into the list of Magadan municipality investment projects in respect of land plots owned by them, is set by the Magadan City Duma regulation dated 16.06.2005, the number 85-D On the Introduction of a Land Tax on the Territory of Magadan Municipality.

Privileges for Small and Medium-Size Businesses


No.Set PrivilegeGrounds
1.Grace period in rental payments for municipal property rentMagadan Mayor regulation dated 28.03.2005 No. 530 On Commission on Considering Issues of Municipal Property Rent at Magadan Mayor Office
2.Installment on rental payments for municipal property rentMagadan Mayor regulation dated 28.03.2005 No. 530 On Commission on Considering Issues of Municipal Property Rent at Magadan Mayor Office
3.Minimum rental payment size for utilization of municipal immovable property (except land plots)  for small and medium-sized businesses performing activities in the public interestMagadan Mayor regulation dated 20.04.2004 No. 681 On Establishment of the Procedure to Determine Municipal Property Rental Payments (Except Land Plots)
4.Priority right to buy out the rented property with granting installment on market value payment  Federal Law dated 22.07.2008 No. 159-ФЗ On Peculiarities of the Alienation of State-Owned Immovable Property in the Constituent Territories of the Russian Federation or Municipal Property and Property Leased by Small and Medium-Sized Enterprises, and on Amendments to Certain Legislative Acts of the Russian Federation.
5.Allocation of certain regular in-city routes with low passenger traffic to socially important routes  Magadan Mayor regulation dated 26.08.2008 No. 1930 (statutory wording as of 21.09.2009) On Establishment of Joint Scheme of In-City and Suburban Routes of Passenger Transport in Magadan Municipality
 

Special Economic Zone

The Special Economic Zone is an area which is located within the administrative boundaries of the city of Magadan and which establishes a special legal regime of economic activity and the customs procedure of free customs zone.

The main objectives of the creation of a Special Economic Zone are:
• to attract investments,
• to establish and develop industries, energy and transport infrastructure, productive forces,
• to develop financial and commodity markets in Magadan region.
The creation and functioning of the Special Economic Zone is settled by the Federal Law No. 104-FZ dated 31.05.99 On the Special Economic Zone in the Magadan Region.
Participant of the Special Economic Zone is a legal entity or individual entrepreneur, registered on the territory of the Special Economic Zone, which or who has concluded an agreement on the implementation of activities on its territory with the administration of the Special Economic Zone and is included into the register of members of the Special Economic Zone.

The Special Economic Zone will be functioning till December 31, 2025.

Since January01, 2007, the participants of the Special Economic Zone are exempt from paying taxes on profits invested in the development of production and the social sphere in the Magadan region. These benefits are granted at the exercise of economic activities on the territory of the Special Economic Zone within the Magadan region.

Under the current procedure of free customs zone foreign goods (excluding excise) are imported, stored and used on the territory of the Special Economic Zone without payment of customs duties and taxes, without applying non-tariff regulation of foreign goods and without application of prohibitions and restrictions on goods from the Customs Union. Foreign goods which have undergone sufficient processing in accordance with criteria established by law are recognized as the Customs Union goods.
Currently, the State Duma of the Russian Federation is considering a draft law On Introduction of Changes into the First and Second part of the Russian Federation Tax Code in Connection with Amendments to the Federal Law On the Special Economic Zone in the Magadan Region, providing for exemption of the Special Economic Zone members from the payment of taxes in the part going to the federal budget.
The Non-Budgetary Fund of Socio-Economic Development of the Magadan region is vitally important to address the issues of the territory development in the conditions of the SEZ activity and it is generated by registration fees of the SEZ participants.
Every year, with the participation of the Non-Budgetary Fund of Socio-Economic Development of the Magadan Region in the conditions of activity of the Special Economic Zone facilities of public interest are built in Magadan, some funding is allocated and the modernization of housing and communal services is carried out.

In 2013-2014 years, the following activities were completed in Magadan:
- The purchase of hot drum rolling steel pipes;
- Polyurethane foam pipe insulation in polyethylene sheath;
- Reconstruction of the boiler house in the village of Sokol;
- The purchase and delivery of the PISTEN BULLY 400 W snow machine (raw truck);
- The purchase of ski-ramps K-4, K-6, and repair of ski ramps K-15, K-30, K-61;
- Replacement of wooden structures and lifts of ski ramps K-61, K-15, K-30;
- Renewal of the administrative building, the stalls, the city stadium, installation of an information display;
- Completion of facade fit-out works for Culture Center building; manufacturing and delivery of gaming equipment together with fencing structures for the playground in the City Park;
- The purchase and delivery of some musical instruments.
 

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