BENEFITS AND PREFERENCES FOR RESIDENTS OF FEZOne of the advantages of free economic zone investors over investors outside the zone is the presence of special tax and customs benefits and advantages. State-provided preferences for residents of a free economic zone help to establish effective businesses in the country.
Taxation in the free economic zone Gomel-Raton is regulated by the Tax Code of the Republic of Belarus and is liberal in nature.The preferences provided to the residents allow to reduce the amount of payments up to 50% of the amount of taxes paid in the Republic of Belarus.
Features of preferential taxation in the FEZ do not apply to:
catering, gambling, electronic interactive games, trading and purchasing activities, operations with securities;
- sale of goods (works, services), production of which is fully or partially carried out using fixed assets owned or other property rights of the FEZ resident, and (or) the labor of the residents of the FEZ outside the FEZ territory.
LIST privileges and benefits for FEZ residents from 1 January 2019
1. Profit tax
Profits from the sale of goods (works and services) of own production which were exported or sold to other FEZ residents are exempt from profit tax.
2. Real estate tax
FEZ residents are exempt from real estate tax:
2.1. on taxable items purchased during the specified period;
2.2. on objects of taxation with this tax, located on the territory of the respective FEZ, regardless of the direction of their use. The privilege is granted within the quarter, if during the immediately preceding quarter FEZ resident exported goods (works, services) of own production or sold them to other FEZ residents.
3. Land tax / rent for the land
FEZ residents are exempt from land tax/rent for the land on land plots located within FEZ borders:
3.1. land plots located in FEZ borders which belong to FEZ residents and were provided to them after their registration for new construction, but for not more than five years from the date of registration as FEZ resident;
3.2. land plots of FEZ residents, regardless of their purpose. The tax break is given in the first quarter, if in the immediately preceding quarter FEZ resident exported goods (works, services) of own production or sold them to other FEZ residents.
4. Customs payments (import customs duty and VAT paid during customs)
FEZ residents do not pay customs duties:
4.1. while importing into the free customs zone (determined by the application of an enterprise-resident) of building materials, equipment, and raw materials and components for production for the purpose of implementing the claimed investment project;
4.2 when exporting outside the customs territory of the EEU the foreign goods placed under free customs zone procedure, in the same state, as well as goods produced using foreign raw materials (materials, components).
4.3. FEZ residents do not pay VAT during customs procedure while exporting to the customs territory of the EEU products made using foreign goods (raw materials, components), placed under the customs procedure of free customs zone.
Customs payments are paid during export to the customs territory of the EEU of foreign goods placed under free customs zone procedure, in the same state, as well as products manufactured with the use of foreign goods (raw materials, components).
5. Other benefits and preferences:
FEZ residents are exempt from:
5.1. payment for the right to conclude a land lease agreement provided for construction and maintenance of buildings within the boundaries of FEZ;
5.2. fee for giving the foreign citizens and stateless persons hired for implementation of investment project in FEZ, special permits for work in the Republic of Belarus.
FEZ residents do not engage in:
5.3. compensatory planting and compensation of cost of removed, transplanted flora objects during the construction of facilities within the boundaries of FEZ stipulated in the investment project, with the right to delete and transplant of flora objects.
More detailed information on the regulation of the FEZ residents’ activities can be found in the "Legislation".