Dmitry Medvedev approved the creation of a territory for advance development in Dorogobuzh

Russian Prime Minister Dmitry Medvedev signed the decision to create four territories for advanced development (TAD) in Smolensk, Chelyabinsk, and Murmansk regions, as well as in the Komi Republic.

"I inform you that a decision has been signed to create a TAD in Bakal in Chelyabinsk region, a TAD in Dorogobuzh in Smolensk region, and a TAD in Emva in the Komi Republic, and another TAD in Kirovsk in Murmansk region", - the Head of the Cabinet of Ministers said at the meeting with Vice-Premiers.

Dmitry Medvedev also noted that all the four cities are mono-profile settlements where it is necessary to create conditions for the growth of various businesses, including small and medium-sized ones, which make it possible to get rid of the mono-profile character of these cities. The Head of Government stressed that recently in Russia many territories of advance development have been created mainly in mono-cities. 

It should be noted that TAD involves creating a special legal regime for the implementation of business and other activities, including:

• releasing the residents from paying the company property tax;
• establishing lower rates for company income tax: the tax rate for the tax to be transferred to the federal budget is set at 0 percent for 5 years, to the regional budget - may not exceed 5 percent for 5 years and cannot be less than 10 percent over the next 5 years;
• releasing the residents from the land tax, rent for the land;
• reduced rates of insurance contributions for compulsory pension insurance in the amount of 6 percent, for compulsory social insurance - 1.5 percent, for compulsory health insurance - 0.1 percent.

The TAD is established for a period of 10 years to promote the development of Dorogobuzh urban settlement in Dorogobuzh district of Smolensk region through economic diversification, attraction of investment of more than 10 billion rubles to the mono-profile municipality, creation of new jobs not related to the activities of the city-forming organization, and production of export-oriented and import-substituting products.