Special Economic Zone - spb-hamburg.de

Special Economic Zone DefinitionSpecial Economic Zone means a part of theterritory of the Russian Federation determinedby the Government of the Russian Federationwhere a special regime for carrying onentrepreneurial business operates (RF Law dated22.07.2005 № 116-FZ «Special Economic Zonesin the Russian Federation», Article 2).11

Technology Development Activities Definition Creation, production and sale of R&D products Creation and implementation of programs forcomputing machines (computer programs), database,topologies, microelectronic integrated circuits,information systems, Provision of services to implement and service suchproducts, programs, bases, topologies and circuits.Production of R&D products within the boundaries of technology developmentactivities special economic zone is allowed by resolution of the expert council fortechnology development activities special economic zones being governed by thepriority lines in the development of science, technologies and equipment and thelist of critical technologies of the RF approved by the RF Government (a part asamended on 28.12. 2009) (law № 116-fz, clause 2 article 10)2

Saint Petersburg Special Economic ZoneNovo-Orlovskoye Section of SEZLands to be rented outFrom 2013 - lease of offices in theTechnology Transfer CenterКАДЗСДNeudorf SEZ sectionOffices lease in theAdministrativeBusiness Center3

Terms for SEZ functioning in Saint PetersburgCorrespondence toclusters• Biomedicine, including pharmaceutical• Precision and analytical instruments industry• IT technologies• Energy-saving technologies• Microelectronics• Communications facilities• NanotechnologiesGuaranteed support withengineering resources• SEZ territory is completely supported with engineering resources for account of the RFbudget and budget of Saint Petersburg (utilities infrastructure);• Preferential connection to power sources (exemption from payment for technologicalconnection to electrical power networks for 0.6 MW per 1 ha of landLegal guarantees to theresidents, privilegesGuarantees against worsening tax situation (Article 38 of the Federal Law dated22.07.2005 №116-FZ ‘Special Economic Zones in the RF’;Tax and customs preferences;Streamlined mechanism for granting land, reduced rental for land, option tobuyout the land after putting the project into operation, reduced rental forofficesOpportunity to cooperate withthe scientific-research centers• Use of the staff potential, research facilities of theuniversities and RAS institutes4

Tax reliefs for the SEZ residentsType of TaxRegulatory ActGeneral Terms(RF, SPb territory)Within the SaintPetersburg SEZboundariesTermInsurancecontributionscl.1-4 Art.12 FL 272-FZPension Fund - 26%Pension Fund - 8%Pension Fund – 13 %Pension Fund – 20 %2010-201720182019cl.2 Art.57 FL № 272-FZSocial Insurance Fund.- 2.9%Social Insurance Fund:2%2.9%2011-20172018-2019cl.2 Art.58 FL № 272-FZFederal Fund of Mandatory MedicalInsurance^2011 – 3.1%2012 – 5.1 %Federal Fund of mandatorymedical insurance:2%4%5.1%20112012-20172018-2019Territorial funds of mandatory medicalinsurance :2011 - 2%2012 – 0%Territorial Funds of mandatorymedical insurance:2%0%20112012-2019Land tax (% of thecadastral value)cl.9 Art.395 RF Tax Code1.5%(Max)0% 5 years*)Assets taxcl.17 Art.381 RF Tax CodeArt.11-1 SPb Law № 81-11 2.2%0% 10 years*)Transport tax cl.5-1 SPb Law № 81-11150 rbls/h.p.(Max.)0 rbls. (except air and watervehicles)5 years*)Profit tax cl.11-3 SPb Law № 81-1120%13,5%Until18.01.2026*) upon arising of the ownership title5

Provision of LandThe Land is granted to the SEZ residents under the Agreement fortechnology development activities signed.If the land requested by the resident is not in the government cadastralrecords, the activity to form it and its governmental cadastral record shallbe done for account of the SEZ resident (Art. 22 of the Federal Act dated22.07.2005 № 116-FZ «Special Economic Zones in the RussianFederation»).The decree of the Russian Federation Government determinesmaximum size of the land rental to be granted to the SEZ resident in size of2% of their cadastral value a year.The cadastral value of lands is fixed by decree of the Government ofSaint Petersburg dated 28.11.2006 № 1432 «Approving CadastralValuation of Lands in Saint Petersburg»:SEZ SectionCadastral valueper 1 ha, thous. rbls.Type of Land Functional UseNeudorf 11 690 Under industrial facilities21 420 Under administrative-managementfacilitiesNovo-Orlovskoye 17 300 Under industrial facilities34 410 Under administrative-managementfacilities6

Cost of Renting Land within the SEZ territory for the SEZ residentsTerm ofAgreement forTechnologyDevelopmentActivitiesCost of Renting Land (under the order ofthe RF Ministry of EconomicDevelopment dated 14.07.2006 №190)per 1 ha, rbls/yearNeudorf sectionNovo-OrlovskoyesectionType Of Functional Use Of Lands1 st 93 520 138 400 Under industrial facilities171 360 275 280 Under administrative-managementfacilities2 nd 116 900 173 000 Under industrial facilities214 200 344 100 Under administrative-managementfacilities3 rd 140 280 207 600 Under industrial facilitiesBeginning fromthe 4 th year(within 5 years)Maximum size ofpayment257 040 412 920 Under administrative-managementfacilities163 660 242 200 Under industrial facilities299 880 481 740 Under administrative-managementfacilities233 800 346 000 Under industrial facilities428 400 688 200 Under administrative-managementfacilities7

Buyout of Lands in the SEZ territory where the properties builtby the SEZ residents are locatedThe land lessees-SEZ residents, owners of the properties created by them are entitled tobuy out the land located under the said properties (in accordance with clause 3 Article32 of 116-FZ dated 22.07.2005 ‘Special Economic Zones of the Russian Federation’).The size of payment for the buyout of the land until January 1, 2012 is fixed by the Law ofSaint Petersburg dated 15.02.2010 № 59-19 and equals to the thirteen-time rate of theland tax which is 1.5% of the cadastral value of the land in accordance with the SaintPetersburg Law dated 28.12.2005 № 611-86 (i.e. 19.5% of the cadastral value of theland).Size of Payment per 1 haUse of land underindustrial facilitiesNeudorf 2 279,55 thous. rbls.Novo-Orlovskoye 3 373,5 thous. rbls.Use of land underadministrative-management facilitiesNeudorf 4 176,9 thous. rbls.Novo-Orlovskoye 6 709,95 thous. rbls.8

Utilities support of SEZ resident companiesTariffs for energy resources consumption for 2011 (excluding VAT)Category Unit SEZ Section Namen of Utility Company CostElectricity supply kWh NeudorfNovo-OrlovskoyeHeat supply Gcal NeudorfNovo-OrlovskoyeGas supply 1000 m3 NeudorfNovo-OrlovskoyeEnergy Holding OOOSEZ OAO SUE TEC SPbPeterburg-Regiongas ZAOFlat-rate tariff2663.06 rbls.Hot water612 rbls.1207.34 rbls.3255 rbls.Water supply Cub.m NeudorfNovo-OrlovskoyeWater disposal Cub.m NeudorfNovo-OrlovskoyeSouthwestern VodokanalRight bank VodokanalSouthwestern VodokanalRight bank VodokanalFresh water18.70 rbls.21,74 rbls.21,74 rbls.9

10Free Customs ZoneFree customs zone means customs regime under which: Foreign goods are place and used within the SEZ without payment of customs duties andvalue added tax as well as with no enforcement of bans and restrictions of economic nature onsuch goods set forth in accordance with the RF laws on governmental regulation of foreigntrade activity, And the Russian goods are place and used on the terms applicable to import inaccordance with the customs export regime with the payment of excise and without paymentexport customs duties.Goods are placed by the SEZ residents under the customs regime of such free customszone in order to carry on technology development activities.The following is placed under the customs regime of such free customs zone:‣ Goods brought in to the RF customs territory from the territories of foreign states;‣ Goods brought in to the territory of the special economic zone from the other part of theRF customs territory;‣ Goods located in the SEZ territory and acquired from persons who are not residents ofsuch special economic zone.Article 37 of federal act № 116-fz

Customs duty relief for residentsFlow of Russian goodsFlow of foreign goodsduties 0, VAT 0%, excisesImport from RF territoryFree customsduties 0, VAT 0%Import from abroadVAT 18%, excisesExport to RF territoryExport abroadExport duty, VAT 0%S E Zzoneduties, VAT 18%, excisesExport from RF territoryExport abroadExport duty, VAT 0%11

Procedure for obtaining the SEZ residentstatusWHO?Can become a residentHOW?Commercial companies (orindividual entrepreneurs)4 stepsNot having branches orrepresentative offices outsidethe SEZ territory1234• Registration in Saint Petersburg, developmentof business plan, application to the branch ofSEZ OAO• Approval of such business plan by theSupervisory Board and approval by the ExpertCouncil• Entering into the Agreement for technologydevelopment activities with the RF Ministry ofEconomic Development• Carry on exclusive activities in SEZcontemplated by Agreement and business plan12

Neudorf SectionareasresidentsPlots for accommodationof objects SEZ and customsAdministrative Business ComplexTotal area of space to be leased: 5 187,2 sq.mFree area: 2 141,6 sq.mareasresidents13

Infrastructure of Neudorf SectionAdministrative Business ComplexABC performance indicators:Total area - 14 280 sq.m.Number of floors – 8 (zero floor – car parking, 8 th floor- mechanical)Area of one floor: 1 400 sq.m.Total area of space to be leased: 5 187,2 sq.mFree area: 2 141,6 m 22nd floor: 119,6 m 23rd floor: 117,2 m 24 th floor: 329,2 m 25 th floor: 1176,1 m 2 (if all the floor - 1449,3 m 2 )6 th floor : 399,5 m 2Reduced rental rate for 2011 of 380 rbls./m2 isprovided for company residentsAdministrative space, including:• Exhibition facilities;• Conference hall with the system of simultaneoustranslation;• Press center, press conference hall• Meeting roomsCheckpoint 1Checkpoint 2Own boiler housewith ViessmannequipmentCustoms infrastructure(fencing of the area,Checkpoint 1, checkpoint2)Underground parking for 46 car spacesGround parking for 152 car spaces14

External infrastructure of Novo-Orlovskoye sectionLocated in the Primorsky District ofSaint Petersburg, to the north of theNovo-Orlovsky urban forestThe area borders with the territory of theRussian Academy of Sciencesinstitutes:• Institute for Electrophysics andElectric Power RAS• Ioffe Physical-Technical Institute• Institute for Applied Astronomy RASCar manufacturing plant Nissan islocated not far from the areaLegend:Existing roadsRoads designedMetro stations designedSaint Petersburg completely ensuresthe territory with the transportinfrastructure, including excess to theMotor Ring Road (Parashutnaya Ul.from Dolgoozernaya Ul. to Motor RingRoad)15

External infrastructure of Novo-Orlovskoye sectionExternal infrastructure0Канализационныйколлектор (план ввода –конец 2010-начало 2011 ггIt is provided connection to the networks ofelectricity supply, water supply. There is anengineering option to connect to the sewernetwork after putting into operation of thetunnel collector “Severnaya Dolina – NorthernValley”. Gas pipe line is under construction.Infrastructure inside SEZ territoryTerm for support with the engineering utilitiesin the SEZ territory:• for construction needs – IV quarter 2011;• for carrying on technology development activities –I quarter 2013.For resident companies – guaranteed connection toenergy resources without payment to connectingcapacities– 0.6 MW per 1 ha of land leased16

Infrastructure in the territory of Novo-Orlovskoye section4321. Technology Transfer Center with business incubator area15 000 sq.m (commissioning – II quarter 2013);2. Administrative business center with exhibition facilitiestotal area 25 000 sq.m (construction period 2013-2014)3. Innovation center Nr. 1 area 12 000 sq.m (2014-2015);4. Innovation center Nr 2 area 18 000 sq.m (2015-2016);5. Infrastructure for arrangement of the customs point totalarea 1450 sq.m with fencing of the site, length 8 km;6. Site roads of total length 5.35 km.51Site and Offsite utilities:• Storm water system with treatment facilitiesvolume 2280 cub.m./day. Total length 7 km;• Sewer network of total length 5.47 km;• Water supply system of total length 9.46 km;• Telecommunications, computer communication – 10 km;• Heat supply – 5.37km;• Electricity supply.618

Infrastructure in the territory of Novo-Orlovskoye SectionTechnology Transfer Centerwith business incubatorCommissioning – II quarter 2013Total area of the building - 15 143 m 2Usable area - 13 554 m 2Including:Public space –4 910 m 2Service and amenities space – 1 151 m 2Office space – 4 153 m 2Engineering and utilities space – 746 m 2Administrative space – 2 452 m 2Crawl space– 1 139 m 2Administrative Business Centerwith Exhibition FacilitiesCommissioning - 2014Total area of the building - 25 510 м 2Structural volume - 119 213 m 3Construction area: - 7 700 m 2Number of floors - 9 floorsUsable area - 24 246 m 2Including:Public space – 9 382m 2Office space – 9 619 m 2Administrative space – 1 515 m 219

Technology Transfer Center with business incubator20

Technology Transfer Center with business incubator21

Technology Transfer Center with business incubator

Technology Transfer Center with business incubator

Technology Transfer Center with business incubator