Abstract:

A typical feature of large business in a globalized world is incorporation of a firm, part of a transnational company, in a low tax jurisdiction. These firms are chiefly used to remove the taxation base from taxation in the states with a traditional taxation system. The international community mainly criticizes offshore jurisdictions for unfair tax competition, which results in state budget shortfalls. Two low taxation zones were launched in Russia in the second half of 2018: the Russky island in Russia’s Far East and the island of Oktyabrsky in Russia’s exclave of Kaliningrad region. The article debates fair taxation rules of preferential taxation regimes in the special Russian administrative regions аnd puts forward proposals to boost their taxation attractiveness for potential residents. It seems fair that our research could be of use for the government when creating a taxation policy and for companies to improve their tax efficiency