Frequently asked Questions

Is it possible to register a service rendering entity as a resident of FEZ “Vitebsk”?

It is possible, in the case of fulfillment of the requirements on SEZ established by the legislation.

How to become FEZ “Vitebsk” resident?

As a resident of the free economic zone we register legal entities established in the Republic of Belarus, or individual entrepreneurs of the Republic of Belarus with the location within the boundaries of the free economic zone "Vitebsk", that concluded a contract on terms of activity with the administration of the free economic zone.

To register as a resident of FEZ "Vitebsk" you must submit the following documents to the administration:

• application (according to the form approved by the Administration of FEZ "Vitebsk");
• copies of constituent documents duly certified and upon presenting original documents (for legal entities);
• a copy of the certificate of state registration upon presentation of the original document;
• business plan of investment project (in the form approved by FEZ "Vitebsk" and provision of project implementation investments not less than 1 million Euro, as well as export of goods manufactured).
• business plan of legal entity which subordinates to or which shares (interests) are managed by the central governmental authority, other state organization subordinated to the Government of the Republic of Belarus, Vitebsk Regional Executive Committee shall be agreed by such body of state administration or;
• payment document confirming payment of the state fees for registration as a resident of the free economic zone in the amount of 50 base units.

What preferences are granted to a resident of FEZ

• Exemption from income tax for ten calendar years from the date of the announcement of gross profit. After 10 years, a reduction of income tax rate to 50% from the standard tax rate is provided. Currently, the standard income tax rate is 18 percent;
•  Exemption from property tax;
•  Exemption from a number of payments relating to the implementation of real estate construction projects (from paying land tax for the period of design and construction of objects, from paying for the right to conclude a land lease agreement, from compensatory payments of flora objects cost);
•  FEZ residents are exempt from the mandatory sale of foreign currency;
• Import duties and taxes are not levied on the import of foreign goods (building structures, technological equipment, raw materials, components, etc.) upon the use of the customs procedure of free customs zone (FCZ) under which the goods are placed and used within the territory of free economic zone.
•  In respect of foreign goods placed under the customs procedure of FCZ and used for the manufacture of products with a sufficient degree of processing and export outside of the Eurasian Economic Union (Belarus, Kazakhstan, Russia, Armenia, Kyrgyzstan), export or re-export customs procedure are applied; they do not provide for the payment of customs duties and taxes.

What do we need in order to make use of the benefits?

The special legal regime providing for preferential conditions for business and investment is applied to legal persons duly registered as residents of FEZ "Vitebsk" in the following cases:
• sale of own products outward the Republic of Belarus;
• sale of own products to other residents of free economic zones of the Republic of Belarus.
FEZ residents must provide a separate accounting of revenue (income) expenses (costs),  amounts involved in determining the tax base for taxes, dues (duties) on the activity which is covered by the FEZ specific taxation.

To what activities the preferential taxation is not applied?

Particularities of the taxation in the FEZ established by the Tax Code of the Republic of Belarus shall not be applied to public catering, gambling business, organization and conducting of interactive electronic games, trading, trading-purchasing activity, securities transactions;

What activities are prohibited in the free economic zones?

Residents of free economic zone are prohibited to perform the following activities within the free economic zone:
• manufacture, storage, sale and repair of weapons, their parts and components, ammunition, weapons, explosive devices, as well as production, storage and sales of explosives;
• production, processing, storage, disposal, sale of radioactive and other hazardous materials;
• trafficking of narcotic drugs, psychotropic substances and their precursors;
• sowing, cultivation, processing, storage and sales of crops containing toxic substances; production of alcoholic beverages, with the exception of champagne, wines and beer; manufacture of tobacco products;
•production of securities, banknotes and coins, postage stamps; lottery activities;
• preparation and broadcasting of radio and TV programs, except technical maintenance of radio and television;

treatment of people suffering from diseases dangerous to human health;

treatment of animals with very dangerous diseases;
• activities related to the overseas employment of citizens of the Republic of Belarus, foreign citizens and stateless persons permanently residing in the Republic of Belarus.

The company is located in the territory of FEZ "Vitebsk" and is not a resident of the FEZ. Does it have any benefits and preferences?

The company situated in the territory of FEZ "Vitebsk" has the possibility to take advantage of privileges and preferences only if it implements the investment project and is registered as the FEZ "Vitebsk" resident.

Whether it is possible to register a company as the FEZ resident outside the territory of FEZ

Legislation on FEZ provides the principle of the territorial location of enterprises-residents. This means that a company can become a resident of the FEZ only if it is located on the territory of FEZ.