The rationale for creating a free economic zone in the Krasnodar Territory

Abstract

The practice of using free economic zones in Russia is not straightforward. The regime of the free economic zone was tested back in the 12-13 centuries in Europe. The first full-fledged free economic zone began to operate in Germany. In Russia, such zones began to appear in the late 90s of the 20th century. The Russian practice of applying the above mechanism is still not effective enough. This is a consequence of the lack of development of the regulatory framework. The object of research is the institute of free economic zones in world practice, the subject of research is the activity of free economic zones on the territory of the Krasnodar Territory. The goal of creating free economic zones - catalysts for the economic growth of regions and its participants - is updated economic relations. The goals of free economic zones are to stimulate the economic development of the country, to establish foreign economic relations. In the course of the study, differences between free and special economic zones from other regions were revealed. It has been established that the countries of the free economic zone differ from other territories in the following: maximum tax privileges, temporary exemption from them in general; the effect of benefits on the import of products necessary for the company; reduced utility tariffs; simplified business registration procedure. The bonuses offered to entrepreneurs and legal entities working in such areas are characterized: the ability to attract highly qualified domestic personnel; preferential tax regimes, which has a beneficial effect on reducing costs and allows you to obtain more favorable conditions in the market; reducing the cost of import and export, which significantly increases the profitability of the enterprise.