March 13, 2013. Residents of the Titanium Valley Special Economic Zone will have all their corporate income tax dropped for ten fiscal periods. The changes in the Sverdlovsk Region law on corporate income tax rates for certain local taxpayers were adopted today, the regional government’s Press Service & Information Department reports.

This measure aims to create a competitive advantage for the special economic zone’s future residents. The relief will apply from the moment a company makes its first profit rather than from the day a company registers as a resident.

Later on, between the 11th and the 15th fiscal period, the corporate income tax will come to 5%, and, starting from the 16th fiscal period, it will come to 13.5%, First Deputy Economics Minister Anatoly Ogloblin explained. These measures have to do with a long investment phase for the implementation of the large-scale projects that the Titanium Valley’s residents are working on. When this proposal was being elaborated, Sverdlovsk Region officials relied on the experience of other federal constituencies that helped them attract residents to special economic zones.