Belarusian enterprises to get preferences in Changchun technology park
23 December 2010
MINSK (BelTA) – Belarusian enterprises will be awarded preferences for business development in the Belarus-China technology park in the Chinese city of Changchun, Jilin province, BelTA learned from Marina Tsives, head of the Belarusian Center for Scientific and Technical Cooperation with Chinese Regions of the technology park Polytechnic of the Belarusian National Technical University.
Marina Tsives said that the technology park was established in October 2010. It is a unique platform for international scientific and technical cooperation. Belarusian enterprises will be able to develop their business in such areas as photoelectronics, laser technology, new materials and power engineering, agriculture and biotechnologies, and information technologies. “Resident companies of the Belarus-China technology park will get a number of preferences, an access to a huge market and business expansion opportunities,” Marina Tsives said.
Thus the preferential income tax rate for the enterprises located in the Changchun high tech development zone is 15%. The income tax rate is 10% for the enterprises that have exported over 70% of the output in any year.
New enterprises are exempt from income tax within two years after they were put into operation. New joint Belarusian-Chinese enterprises that operate for at least ten years in line with contracts are exempt from income tax within two years after they start getting profits.
Exporters are exempt from export tax. However, this rule is not applicable to banned exports or restricted trade exports. Raw materials, components and utilities, which are imported to produce high-tech products, are exempt from custom duties on import. Manufacturing equipment imported by enterprises, which have been created using foreign investments, is exempt from custom duties on import and from value added tax on custom duties on import turnover.
“Crucial projects, which go in line with the national industrial policy, and investment-friendly projects with high technological efficiency, payback and profitability are awarded preferences under certain conditions. Moreover, there are rewarding preferences for land utilization tariffs, cost for auxiliary services for proprietary needs, industrial premises rent, and the cost of protection of investments from risks,” Marina Tsives said.