Russia Planning Free Economic Zone Incentives in Occupied Ukrainian Territories

The Russian government is planning the creation of a free economic zone in the occupied Ukrainian territories of the Donetsk, Lugansk, Kherson, and Zaporizhzhia. Qualifying taxpayers operating in the free economic zone would be eligible for the following incentives:

• 0% corporate income tax paid to the federal budget for 10 years;
• 0% to 13.5% corporate income tax paid to the regional budget, depending on the type of business activity;
• Property tax exemption for 10 years;
• Reduced social securi…