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Preferences.

  Tax privileges and customs preferences in FEZ "Vitebsk".
  Customs preferences on the FEZ "Vitebsk" territory.

  Tax privileges and customs preferences in FEZ "Vitebsk".

In accordance with the Decree on Free Economic Zone "Vitebsk", a special regime, which provides preferential conditions for business activities of companies, registered as FEZ "Vitebsk" residents, is active on its territory.

  • 100% exemption from profit tax on own products and services within first 5 years from the moment of profit declaration;
  • reduction of the profit tax (15% instead of 24 %) in the years to follow after 5 -years period, mentioned above;
  • exemption from profit taxation directed to the investments into the Republic of Belarus;
  • exemption from the united payment to the budget of Belarus (in case of export - oriented production);
  • exemption from the real estate tax;
  • only 5% (instead of 15%) is the rate of the income tax (dividends) for foreign founders legal persons;
  • 50% reduction of VAT payments.
All the taxes on the FEZ "Vitebsk" territory can be divided into three groups:
  • taxes which are paid without privileges;
  • taxes which are paid with privileges;
  • taxes which are not paid;

Taxes, which are paid without privileges.
  1. Excises on produced goods (oil and petroleum products etc);
  2. Ecological Tax;
  3. Land Tax;
  4. Payments to the fund of a social protection of the population;
  5. The United Payment to the local budget:
    • deductions to the accommodation - investment fund;
    • deductions to the upkeep and repairs of the amount of housing;
  6. Local taxes and levies:
    • sales tax (on retail trade);
    • services duty;
  7. Tax on receipts for Belarusian juridical and natural persons and foreign juridical persons.
  8. Tax on incomes for Belarusian natural persons.

Taxes, which are paid with privileges.
  1. Value-added Tax. (only 50% is paid);
  2. The United Payment into Republican budget: in case of realization of products and services on local market. (2% instead of 3%):
    • deductions to the fund of economic stabilization of the manufacturers of agricultural products;
    • road tax ;
  3. United payment (1% instead of 5%):
    • emergency tax;
    • deductions to the fund of employment promotion;
  4. Profit Tax (after 5 years from the first profit- bringing year). (15% instead of 24%);
  5. Tax on receipts for foreign juridical persons. (5% instead of 15%).

Taxes, which are not paid.
  1. Value-added Tax and Excises for import into the FEZ "Vitebsk" territory;
  2. Car gasoline sales tax;
  3. The United Payment to the State budget: in case of export of products and services:
    • deductions to the republican fund of support of the manufacturers of agricultural products;
    • tax for the use of highways to the Road Fund;
  4. Real estate Tax:
  5. Profit Tax (during 5 first profit- bringing years);
  6. Local target Taxes;
    • transport tax;
    • deductions to the upkeep and development of infrastructure of the city;
  7. Customs duties for import (export) into (out of) the territory of the FEZ "Vitebsk" (Republic of Belarus).

For the period of the FEZ "Vitebsk" functioning (30 years) any increase in taxes rates is not admissible. International agreement between Belarus and other countries on avoiding double taxation are in power on the FEZ "Vitebsk" territory.

In this juncture, mentioned above tax privileges and customs preferences allow producers to reduce financial load of an enterprise on 30% - 40% in comparison with other subjects of management in Belarus.

 

  Customs preferences on the FEZ "Vitebsk" territory.

The territory of the Free Economic Zone 'Vitebsk" has also got the status and the privileges of Free Customs Zone (FCZ).

FCZ "Vitebsk" is a part of the FEZ "Vitebsk" which is defined by the FEZ Administration as agreed with Belarussian State Customs Committee. Customs issuance of foreign goods, which are exported/imported to/from FEZ "Vitebsk" is done on the FCZ "Vitebsk" territory.

The regime of Free Customs Zone has the following specific features:

1. In case of export to FCZ there is an exemption from export customs dues for:

  • imported goods;
  • foreign goods (which are under customs control on the customs territory of Belarus and Russian Federation);
  • third countries goods exported from the territory of Russia and have free circulation in Russia.

2. In case of import from FCZ there are not customs dues and taxes, measures of economic policy are not applied towards:

  • goods and services, exported from the customs zones of Belarus and Russia (only if they have a certificate of self produced goods);
  • goods and services exported to the other part of Belarusian customs territory or Russia (only if certificate of origin of goods (form ST -1) and self produced goods certificate are present).
Taking into consideration everything these two features, the export of goods made on the FEZ "Vitebsk" territory is free of customs dues and taxes, and measures of economic policy are not applied. But it should be stressed that the origin of goods and services must be certified documentary.

Self-produced goods and services of the FEZ "Vitebsk" residents are not quoted nor licensed when exported to the rest of the Belarusian customs territory and beyond. The exception are some goods on which Belarus has international obligations.

 FEZ "Vitebsk"
 P. Brovky str. 50, 210605 Vitebsk The Republic of Belarus
 Tel / Fax: +375 /212/ 26 08 02
 E-mail:
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