Mogilev Free Economic Zone is a part of the Belarusian territory. Its residents are subject to special legal regulations of investment and industrial activities.
Mogilev FEZ was created in 2002 under the Decree of the President of the Republic of Belarus (No. 66 of 31.01.2002) for the term of 30 years. Mogilev FEZ currently consists of 8 sites with the total area of 2,108 hectares. All the Mogilev FEZ sites are characterized with well-developed engineering communications and transport infrastructure.
The Mogilev FEZ residents are granted with favorable terms for conducting business.
While implementing investment projects the FEZ residents are exempt from:
- Profit Tax during 5 years since the first profit is declared
- Real Estate Tax
Preferential tax rates are applied to:
- Profit Tax. After the 5-year period expires the FEZ residents pay Profit Tax at the halved rate, which should not exceed 12%.
- VAT. The preferential VAT rate of 10% is applied to goods sold in Belarus (the common rate of 20% is applied if goods are sold at the domestic market).
The instrument of a Free Customs Zone (FCZ) is used for provision of customs preferences to the FEZ residents. FCZ are areas, where the FEZ residents are allowed to store and use imported goods without paying duties or taxes. Their borders are defined separately for each particular resident.
The FEZ residents are exempt from paying custom duties on raw materials, equipment and components imported to the territory of FEZ
The FEZ residents are exempt from paying custom duties on goods manufactured in the FEZ and supplied outside the Customs Union or to other FEZ residents. The companies registered as FEZ residents before January 1, 2012 are granted with the right to sell their products at the domestic markets of Belarus, Russia, and Kazakhstan without paying custom duties. This right is provided for goods certified as originated from the Customs Union, and it will be valid till January 1, 2017.
To become registered as a FEZ resident an investment project has to meet the following requirements:
- The total amount of investments is not less than EUR 1 mln.
- The project implies creation of an export-oriented and / or import-substituting production.
A legal entity of the Republic of Belarus or an individual entrepreneur of the Republic of Belarus located in the territory of Mogilev FEZ, which has signed together with Administration of Mogilev FEZ the Agreement on terms of activities in the FEZ, can be registered as a Mogilev FEZ resident.
To be registered as a resident investor must submit to the FEZ Administration:
• a set of documents for the state registration of a legal entity of the Republic of Belarus;
• a business-plan of an investment project, which meets requirements of the Belarusian legislation.
The simplified registration procedure allows to become a FEZ resident within just 14 working days.
Investment projects being offered for implementation in Mogilev FEZ:
• Establishment of chemical products’ manufacturers within the frames of the chemical cluster
• Establishment of construction materials’ manufacturers of within the frames of the construction cluster
• Establishment of production within the frames of the forestry cluster
• Establishment of an international transport and logistic center
• Organization of production of multifunctional polymer film products
Why to invest in Mogilev FEZ?
• A gateway to the Common Economic Area of Belarus, Russia, and Kazakhstan with the population reaching 170 mln.
• Favorable geographic location at the crossroads of the main Pan-European transport corridors
• High level of education and personnel training
• Drastic legal reforms aimed at simplification of business operations. Within just 2 last years Belarus has managed to climb from the 115th to the 68th position in the IFC Doing Business ranking of countries.
Guarantees to investors
Legal guarantees are defined by the Investment Code of the Republic of Belarus and the FEZ legislation:
• The special taxation regulation of the FEZ residents remains unchanged during 7 years since registration as a FEZ resident.
• Foreign investors are free to transfer their incomes in foreign currency outside the Republic of Belarus.
Mogilev FEZ Administration
63 Leninskaya Str.
Mogilev 212030, Republic of Belarus
Tel.: 375 (222) 31 01 48
Fax: 375 (222) 31 15 81