Like worldwide, the mode of free economic zone let enterprises work under special preferential terms.

 

It is a special tax mode which reduces tax payments. 

And a special customs mode which considerably reduces customs payments and dues which should be paid when importing raw materials, components and equipment, necessary for production, to the customs territory of the Republic of Belarus.

 

Advantages, preferences and benefits given to FEZ “Minsk” enterprises-residents.

 

1. FEZ “Minsk” residents pay in the order established by the Tax Code, the Customs Code, Laws of the Republic of Belarus and President’s Edicts the following taxes and dues:

 

Profit Tax, at the rate reduced 50% off the rate established in the paragraph 1 of the Article 142 of the Tax Code, but not more than 12%;

Value-Added Tax

Excise Duty

Property Tax*

Ecological Tax

Tax on extraction of natural resources

Land Tax

State Duty

Patent Dues

Offshore Duties

Stamp Duty

Duty on importation to the territory of the Republic of Belarus ozone-damaging substances

Customs Duties

Local taxes and dues

 

2. The profit of FEZ “Minsk” enterprises-residents obtained from sale of goods (works, services) of own production shall be exempted from taxation on profit during 5 years from the date of declaring the profit.

 

3. * FEZ “Minsk” residents are exempted from the Property Tax in relation to buildings and constructions (including incomplete) situated in the FEZ territory irrespective of the purpose of their use. This exemption is given for three months if a FEZ resident worked the last three months under special legal mode of FEZ.

 

4. Value-Added Tax established in the Paragraph 1 of the Article 102 of the Tax Code (excluding the rate of 10% (9,09%) is paid by the FEZ residents at the rate of 50% off the sum subject to payment from turnover of goods in the territory of the Republic of Belarus in relation to goods of own production manufactured in the FEZ territory or import-substituting goods except cases mentioned in the Paragraph 5 of the Article 326 of the Tax Code.

 

5. Special taxation in FEZ mentioned in the above mentioned clauses 1, 2, 3 is invariable till March, 31, 2015 for FEZ residents registered till April, 1, 2008; for FEZ residents registered after April, 1, 2008 it is invariable during 7 years from the date of registration.

 

The detailed information on peculiarities of taxation in free economic zones you can find in the Chapter 42 of the Tax Code of the Republic of Belarus.

 

Special taxation is applied if FEZ residents sell:

-          goods (works, services) of own production manufactured in FEZ, outside the borders of the Republic of Belarus to foreign legal and (or) physical entities according to made agreements;

-          goods of own production manufactured in FEZ and classified as import-substituting according to the List specified by the Government of the Republic of Belarus as agreed with the President of the Republic of Belarus, in the territory of Belarus;

-          goods (works, services) of own production manufactured in FEZ, to other FEZ residents according to made agreements.