Keeping GRATA's practice of informing clients on important legal developments that might influence their business, we would like to draw your attention to some important legal changes regarding tax, customs and some other concessions granted to persons operating in the Republic of Crimea and the Federal city of Sevastopol.

The Republic of Crimea and the federal city of Sevastopol (hereinafter - 'Crimea' and 'Sevastopol', respectively) became constituent entities of the Russian Federation on 18 March 2014 under the Treaty between the Russian Federation and the Republic of Crimea on the Accession of the Republic of Crimea to the Russian Federation and on Forming New Constituent Entities within the Russian Federation, and starting from this date Russian laws are, as the general rule, effective on their territories.

Until 1 January 2015 there is the transitional period during which the issues of integration of the Crimea and Sevastopol into economic, financial, credit and legal systems, as well as in the system of the state bodies of the Russian Federation are settled.

From 1 January 2015, the laws of the Russian Federation on taxes and fees become effective in Crimea and Sevastopol.

Until 1 January 2017, special regulations applying to relations in the sphere of property, town-planning and forestry as well as relations in the area of cadastral registration of real estate and state registration of the rights to real estate and transactions therewith will be established in the Crimea and Sevastopol by regulatory acts of the Crimea and Sevastopol upon coordination with the federal executive authorities of the Russian Federation in the respective areas.

A number of Federal Laws adopted on 29 November 2014 provide for the tax and other concessions for persons operating in the Crimea and Sevastopol.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.