Taxation in FEZ

 

Taxation in FEZ
Custom preferences

 

 

 

 

Taxation in FEZ

Taxation within the borders of FEZ Gomel-Raton is liberal and regulated by the Tax Code of the Republic of Belarus.

In total a FEZ resident pays nearly 50% of taxes less than the amount of taxes established for the entrepreneurial entities of Belarus.

 

Spetial taxation is not applied to:

    • public catering, gambling business, trade and procurement activity, stock transactions;
    • products (works, services) sale, production (execution, rendering) of which is carried out using fixed assets being in property right of a FEZ resident and/or using labour of the employees of a FEZ resident outside FEZ territory;

 
LIST privileges and benefits for FEZ residents from 1 January 2017

 
1. Profit tax
1.1. 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 for 10 years from the date the company started getting profit.
Residents, registered prior to 2012 are exempt from further profit tax payment for 5 years up to 31 December 2021.
1.2. After this period ends, the residents pay income tax at a rate reduced by 50% in comparison to which exists for other Belarusian enterprises, but not more than 12%.
 
2. Real estate tax
FEZ residents are exempt from real estate tax:
2.1. within 3 years from the date of registration as FEZ resident 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  
FEZ residents are exempt from land tax on land plots located within FEZ borders:
3.1. land plots located within FEZ borders which belong to FEZ residents and were given to them after the registration for construction, but not more than  for five years from the date of registration as the FEZ resident;
3.2. from January 1, 2017 by December 31, 2021 land plots of FEZ residents, which are located within the boundaries of FEZ, regardless of their purpose. The tax break is given in the first quarter, if the immediately preceding quarter FEZ resident carried out the sale of goods (works, services) of own production or export them to other FEZ residents.
 
4. Rent for the land
FEZ residents are exempt from rent payments on land plots located within FEZ borders:
4.1. 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;
4.2. 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.
 
5. Customs payments (import customs duty and VAT  paid during customs)
FEZ residents do not pay customs duties:
5.1. 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;
 5.2 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).
 5.3. 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).
 
6. Other benefits and preferences:
FEZ residents are exempt from:
6.1. payment for the right to conclude a land lease agreement provided for construction and maintenance of buildings within the boundaries of FEZ;
6.2. 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:
6.3. the mandatory sale of foreign currency;
6.4. 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.

Detailed information on custom regulations in FEZ you can find in legislative acts.