The Free Economic Zone “Vitebsk” with the total territory of the zone of about 1 000 ha. is located in the city of Vitebsk – the biggest industrial center on the north-east of the Republic of Belarus with the population of more than 360 000 inhabitants. The city is situated in close vicinity (around 600 rm.) to the biggest industrial and trade centers of Russia – Moscow, St. Petersburg to Baltic States capitals – Riga, Vilnius, Tallinn, Klaipeda port.
Removal of Vitebsk from cities.
- Moscow – 550 km .
- St.Petersburg – 630 km .
- Riga – 515 km .
- Vilnius – 360 km .
- Klaipeda – 667 km .
Main preferences
Tax preferences of the FEZ “Vitebsk”
According to status on the FEZ “Vitebsk”, a special regime, which provides preferential conditions for business activities of companies, registered as FEZ “Vitebsk” residents is active on the territory of the Free Economic Zone “Vitebsk”
The Free Economic Zone “Vitebsk” resident companies are subjects to the following fax privileges:
- 100% exemption from profit tax on own products and services within first 5 years from the moment of profit declaration and 50% in the years to follow;
- exemption from local dues (transport dues and dues on keeping infrastructure) in the period of exemption from profit tax (for 5 years from the moment of declaration).
- 3% exemption from one profit tax;
- exemption from the real estate tax;
- reduction of wage rate tax from 4% to 1%;
Preferences come in power from the first day of the month following the month of making agreement with the administration of the FEZ on the conditions of business activity on the territory of the FEZ “Vitebsk”.
For a period of functioning the FEZ “Vitebsk” (30 years) increase of range and rate of taxes is not allowed. International agreements of avoiding double taxation are active on the territory of the FEZ “Vitebsk”.
Regime of Free customs zone is characterized by the following peculiarities:
1. When importing to the territory of FCZ customs duties and taxes are not collected and measures of economic policy are not applied:
· goods imported from outside the territory of Belarus or Russian Federation.
· goods imported from the territory of Russian Federation, goods from the third countries, put into free circulation in Russian Federation.
2. When exporting from the territory of FCZ customs duties and taxes are not collected and measures of economic policy are not applied:
· goods exported outside the customs territory of Belarus or Russian Federation (export regime is claimed) if they are self-made products and defined as produced on the territory of Belarus.
· goods exported to the rest part of the customs territory of Belarus or to the territory of Russian Federation, which are self-made products and defined as produced on the territory of Belarus and import substitution products according to the range determined by the Government of the Republic of Belarus and coordinated with the President of the Republic of Belarus.
· exemption from customs duties and taxes when exporting products by resident of the FEZ to Russian Federation is performed in the order stated by the Decree of the President of the Republic of Belarus 9.060.2005 No 262.
Self-made products of the residents of the FEZ “Vitebsk” are not subjects for allocation and licensing on the export to the rest customs territory of Belarus and outside with the exception of products on which the Republic of Belarus has international obligations. There is a common customs space and the regime of free trade with the Russian Federation.
Investment potential
The territory of the FEZ “Vitebsk” (about 1000 ha) is located in Vitebsk city and consists of 5 sectors.
At the present moment there are possibilities of placing residents in sectors No 1, No 4.
The territory is equipped with all the necessary engineering communications (electricity, gas, water, sewage, telephone lines, etc.)
The main investment projects are successfully realized on the FEZ “Vitebsk” territory in the following spheres:
· production of building materials
· food production
· oil and petroleum production
· sewing industry
· wood proceeding
· production of electronics
· production of veterinary medicines and chemicals for agrarian sector;
· production of fiber-optical cables;
· sewage disposal plant and water treating equipment;
· production of liquid-crystalline monitors
· production of fur articles
· production of illuminating equipment.
The existence of highly qualified work force in the region.
Another advantage of the FEZ “Vitebsk” is the existence of highly skilled work force in Vitebsk region.
The system of vocational training and higher education in Vitebsk consists of state and none-state educational establishments.
· 3 state and 1 none-state universities.
· 1 Veterinary academy
· 5 colleges
· 14 Vocational-technical schools.
Traditionally the system of education in Vitebsk specializes on preparation of highly qualified (seamstresses, fashion designers, cutters, industrial engineers) workers for food industry, builders, as well as managers, economists lawyers and foreign languages specialists.
Thus, there is a real possibility to implement new high technologies and modern industrial equipment with comparatively low financial expenses.
State Guarantees
Economic activity of the Free Economic Zone "Vitebsk" resident-companies are regulated by number of legislative documents.
The rights of foreign producers on the FEZ "Vitebsk" territory are protected by system of state guarantees, which is stipulated by the legislature of the Republic of Belarus on foreign investments:
- Investments Code of the Republic of Belarus;
- Law on "Free Economic Zones";
- Provision on Free Economic Zone "Vitebsk".
These legislative documents guarantee the observance of the following rights and preferences on the FEZ "Vitebsk" territory:
- Investors independently form their production programmes, set prices and organize sales and distribution;
- The legislative acts, which can complicate or worsen economic activities of productions with foreign capitals are not implied;
- Nationalization, requisition or any other similar measures towards investors' property are not acceptable on the FEZ "Vitebsk" territory.
Structure of planned investments
On this moment (01.04.2006) 28 enterprises with foreign capital from Germany, Poland, the USA, Czech Republic, Bulgaria, the UK, Canada, Latvia, Lithuania, Russia, Belarus are successfully realizing on the FEZ "Vitebsk" territories.
Registration of residents
Any legal person can be registered by the Administration as a FEZ resident according to the operating legislation. Founders of new enterprise can be local and foreign legal and natural people.
Necessary conditions for registering as a resident of the FEZ “Vitebsk” are:
- Location of production on the territory of the FEZ (production is located on the sites given to the FEZ “Vitebsk”.
- Registration of pretender as a resident of the FEZ “Vitebsk”
- State registration of an enterprise in the FEZ “Vitebsk”
- Making an agreement on doing business on the territory of the FEZ “Vitebsk” between economic subject and administration.
Main criteria claimed to investment projects.
- Amount of statute fund – no less 300 000 U.S.D.
Investment proposals
- The Administration of the FEZ “Vitebsk” offers to participate in investment projects’ financing. It is planned to realize them at FEZ “Vitebsk” territory with tax and custom preferences.
- The organization in FEZ “Vitebsk” the production of bricks based on the basis of carbonate strata by dry pressing method without heat treatment ( Download ) ;
- The organization in FEZ “Vitebsk” the production of ultra-sound gas and liquids counters for industrial and communal purposes, the Republic of Belarus ( Download ) ;
- Construction of wooden frame-house plant of Canadian technology ( Download ) ;
- Expansion of the production of PVC and aluminum sash and door pulley, production of fronts from aluminum construction and glass ( Download ) ;
- The organization in FEZ “Vitebsk” the production of dry pectin and pectin comprising products ( Download ) ;
The Administration of the Free Economic Zone "Vitebsk"
P. Brovky str. 50, 210605 Vitebsk The Republic of Belarus
Tel / Fax: +375 /212/ 26 08 02
E-mail: fez@vitebsk.by
http://www.fez-vitebsk.com
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