Economy

General information

 

Tatarstan is one of the most economically developed regions in Russia. Republic is located in the center of large industrial region of the Russian Federation at the crossing of important highways connecting East and West, North and South of the country. The Republic of Tatarstan is rich in natural resources, powerful and diversified industry, high intellectual potential and qualified human resources.

2,2 % of Russia’s farmlands are used by the Republic of Tatarstan, 5% of the country’s agricultural produce are manufactured in republic.

The share of industry in the Tatarstan gross regional product is 44,1%, construction – 8,6%, transport and communications – 7,7%, agriculture – 7,1 %.

The industrial sector of republic is presented by the oil-gas-chemical complex (oil production, manufacturing of synthetic rubber, tyres, polyethylene, and wide range of oil refinery products), major engineering enterprises manufacturing competitive products (heavy trucks, helicopters, aircrafts, aircraft engines, compressors, oil-gas-pumping equipment, river and sea vessels, commercial and motor cars), development of electric and radio instrument engineering.

The share of small and medium-size business in gross regional product makes 25 %.

Technoparks are actively developing in the Republic of Tatarstan. ZAO “Innovative-production technopark “Idea”, industrial site KIP “Master”, IT-park, Technopolis “Himgard” are efficiently operating. The special economic zone of industrial-production type “Alabuga” was founded at the end of 2005. Currently there are 42 residents on its territory.

The following tax benefits are provided for residents of SEZ “Alabuga”:

• Reduced profit tax rate - 13,5 % instead of 20 %
• Exemption from transport tax during 10 years from the date of vehicle registration
• Exemption from property tax during 10 years from the date of property registration in accounting report
• Exemption from land tax during 10 years for land plots located on the territory of SEZ
• Higher depreciation charge can be used for taxation (i.e. standard depreciation charge must not exceed the standard rate twice)