In accordance with the legislation, a special legal regime is in effect in the territory of FEZ “Vitebsk”, which provides benefits for business and investment activities that apply to legal entities registered in the established manner as residents of FEZ “Vitebsk” in the following cases:
- sales of own production outside the territory of the Republic of Belarus;
- sales of own production to other residents of free economic zones of the Republic of Belarus. Tax preferences of FEZ “Vitebsk”.
All taxes in the territory of FEZ “Vitebsk” can be divided into 2 groups:
- payments for which are not levied;
- paid at full rate (taxation of residents of FEZ “Vitebsk”).
Taxes and payments that are NOT paid
- real estate tax;
- income tax;
- value added tax in terms of imported goods included in the manufactured products;
- exemption from a number of payments related to land relations
(from payment of a land tax, from payment for the right to conclude a land lease contract, from compensation payments of the cost of plants).
Taxes and fees paid at full rate.
- excises on manufactured products;
- ecological tax;
- contributions to the Social Protection Fund;
- offshore duty;
- income tax from individuals of the Republic of Belarus.
Benefits come into force on the 1st of the month following the month of concluding with the FEZ administration of a contract on conditions of activity in FEZ “Vitebsk”.
Thus, tax benefits allow the investor to reduce the cost loading of the company by 30-40%, compared with other economic entities in Belarus.
Customs preferences in FEZ “Vitebsk”
There is a single customs territory, within which goods are circulated free of customs duties, quantitative restrictions and non-tariff regulation measures are not applied within the framework of the Eurasian Economic Union of Belarus, Russia, Kazakhstan, Armenia and Kyrgyzstan.
FEZ residents are exempted:
- From payment of import customs duties, taxes when importing into SEZ territory and placing under the customs procedure of the free customs zone (hereinafter referred to as FCZ) of foreign goods (equipment, tools, raw materials, materials and components for production of goods provided for by the investment project).
- From payment of import customs duties and taxes when exporting foreign goods placed under FCZ customs procedure, and products manufactured with the use of foreign goods placed under FCZ customs procedure outside the territory of the Customs Union.
- From payment of value added tax (VAT) when exporting products manufactured with the use of foreign goods (raw materials, materials, components) placed under the customs procedure of the free customs zone into the customs territory of the EAEU.
The main document regulating the procedure and conditions for application of the customs legislation for residents of FEZ is the Agreement on Free (Special, Exclusive) Economic Zones in the Customs Territory of the Customs Union and Customs Procedure of the Free Customs Zone (hereinafter referred to as the Agreement).
FCZ boundaries shall be determined for each resident upon his/her application, after which the resident shall be entitled to place imported foreign goods (at the discretion of the resident and goods of the customs union) under FCZ customs procedure.
FCZ is a customs procedure when goods are placed and used within the territory of FEZ or its part without paying customs duties, taxes, as well as without applying non-tariff regulation measures in relation to foreign goods and without applying prohibitions and restrictions in relation to goods of the customs union.
Advantages of FEZ “Vitebsk”
- state guarantees of investment protection rights;
- developed infrastructure;
- land plots and production areas are equipped with the necessary engineering networks for organizing of production;
- geo-economic status;
- possibility of simultaneous entry into the EU, EEU, CIS markets;
- presence of a certain natural resource base;
- efficient logistics;
- human resources;
- high level of higher and vocational education;
- industrial cooperation;
- location of sectors in the developed industrial centers of Vitebsk region of the Republic of Belarus;
- economic and political stability along with one of the lowest crime rates in the world;
- introduction of visa-free entry into the territory of the Republic of Belarus for citizens of 80 countries of the world.