Typically, fiscal and in-kind incentives are the most popular part of the policy package to attract investors in SEZs. Fiscal incentives often take the form of investment and doing business tax incentives, and evolved in a “standardized” package of fiscal incentives among zones across the world: corporate tax exemptions, VAT exemptions, customs duties exemptions, duty free imports, and exemptions from foreign exchange controls.
FREE ECONOMIC ZONES
Benefits:
Corporate Income Tax
Exemption from export sales and to other FEZ residents
Real Estate Tax
Exemption from taxation on the territory of FEZ within three years from the date of registration; Exemption from export sales and to other FEZ residents. The exemption applies to profits from the sale of goods (works, services) of own production.
Land
Rent
Exemption for the period of design and construction of facilities, but not more than five years from the date of registration. Exemption regardless of the direction of their use (for export and (or) to other FEZ residents)
Land
Tax
Exemption for the period of design and construction of facilities, but not more than five years from the date of registration. Exemption regardless of the direction of their use (for export and (or) to other FEZ residents)
Custom Duties
Exemption from import customs duties, taxes in respect of goods placed under the customs procedure of the free customs zone. Also VAT levied by customs authorities on goods placed by FEZ residents under the customs procedure of release for domestic consumption, manufactured with the use of foreign goods placed under the customs procedure of the FEZ;
Exemption from:
fees for special work permits, residence permits
Exemption from:
compensation of forestry and agricultural production losses
Other benefits
Land lease agreement
Exemption from payment for the right to conclude a land lease agreement
Investment program
Financing of expenses for the creation of engineering and transport infrastructure at the expense of funds provided in the State investment program and local budgets, in the case the FEZ resident's implements the investment project with the declared investment volume of more than 10 million euros