A law on the tax and customs control in the free economic zone of Crimea and specifics of the economic operation in the region, passed by the parliament on August 14, 2014 and signed by Ukrainian President Petro Poroshenko comes into force.
According to the law, the free economic zone of Crimea is introduced in two administrative and territorial units of Ukraine, as well as Republic of Crimea and Sevastopol City.
According to the document, the special law regime for economic operations of individuals and companies, including the special procedure for applying the requirements of the regulatory, tax and customs laws of Ukraine and the special regime of internal and external migration of individuals, is in effect. A free customs zone is created within the free economic zone of Crimea.
The free economic zone is created without agreeing it with the relevant local government or executive power agencies. National taxes and duties are not collected on the territory of the free economic zone. Individuals who have the taxation address on the different territory of Ukraine than the free economic zone is obliged to declare property in their ownership on the territory of the free economic zone of Crimea.
Crimea was held local referendum to secede from Ukraine and was annexed by Russia in March, a move that is not recognized by Kyiv authorities.
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