Donetsk, Jul 10 — DAN. President Vladimir Putin has signed the law to enable small and medium businesses in the new territories to apply for state support measures starting this year. The document was published on the official legal information portal on Monday.

Previously, only newly-created businesses in the Donetsk and Lugansk People’s Republic and the Zaporozhye and Kherson regions were eligible for state support in 2023, while established companies could seek these measures beginning from 2024, based on the tax statement for 2023.

Under the document, legal entities will be put on the register of small and medium businesses based on the latest information from the Federal Service for State Statistics on the number of their employees. The companies will be entitled to state support following their registration. The default registration date is January 10, 2023, regardless of the actual document submission date.

The law thus eases the assignment of the small/medium business status to enterprises in the new regions which opens access to state support measures. Under the new law, small organizations in the new regions can use reduced social tax. The special procedure will remain effective until June 10, 2024.

Earlier, members of the Federation Council upper house of the Russian parliament said that the law would facilitate the economic integration of the new regions. “A transition mechanism is set to include the legal entities in the register of small and medium businesses, which were operating in the territories of the Donetsk and Lugansk People’s Republics and the Kherson and Zaporozhye regions as of the moment of the accession to Russia, ” said head of the FC committee on economic policy Dmitry Vorona. *jk