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What tax incentives are applied to the residents of the industrial zone?
What tax incentives are applied to the residents of the industrial zone?
I read in the media that, starting from January 1, 2025, a number of tax incentives will be applied to industrial zones. As a taxpayer engaged in the production of construction materials, I would like to expand my operations and open a new production facility within an industrial zone. I would like to know what tax incentives may apply to me if I register as a participant of an industrial zone.
The State Tax Service under the Ministry of Economy has stated that, according to the amendments made to Articles 199.8 and 207.4 of the Tax Code effective from January 1, 2025, the managing organization or operator of the industrial zone is exempt from paying property tax and land tax for the property located and land used within the industrial zone.
As can be seen, the amendments made to the Tax Code as of January 1, 2025, relate only to the exemption from property and land taxes for the managing organization or operator of industrial zones. Accordingly, in the case mentioned in the inquiry, taxes by taxpayers registered as participants of the industrial zone are calculated and paid to the state budget in the general manner established by the Tax Code.
The Service has also noted that if you obtain an investment promotion certificate as a participant of the industrial zone, you can benefit from many incentives provided by the Tax Code. Specifically, according to the provisions of the Tax Code, taxpayers who have obtained an investment promotion certificate are exempt for 7 years from the date of receipt of the certificate from VAT on imported machinery, technological equipment, and devices based on supporting documentation; from property and land taxes on property acquired with investment funds under the respective investment project and on land owned or used; and from profit (income) tax on 50% of the profit (income) earned.
I read in the media that, starting from January 1, 2025, a number of tax incentives will be applied to industrial zones. As a taxpayer engaged in the production of construction materials, I would like to expand my operations and open a new production facility within an industrial zone. I would like to know what tax incentives may apply to me if I register as a participant of an industrial zone.
The State Tax Service under the Ministry of Economy has stated that, according to the amendments made to Articles 199.8 and 207.4 of the Tax Code effective from January 1, 2025, the managing organization or operator of the industrial zone is exempt from paying property tax and land tax for the property located and land used within the industrial zone.
As can be seen, the amendments made to the Tax Code as of January 1, 2025, relate only to the exemption from property and land taxes for the managing organization or operator of industrial zones. Accordingly, in the case mentioned in the inquiry, taxes by taxpayers registered as participants of the industrial zone are calculated and paid to the state budget in the general manner established by the Tax Code.
The Service has also noted that if you obtain an investment promotion certificate as a participant of the industrial zone, you can benefit from many incentives provided by the Tax Code. Specifically, according to the provisions of the Tax Code, taxpayers who have obtained an investment promotion certificate are exempt for 7 years from the date of receipt of the certificate from VAT on imported machinery, technological equipment, and devices based on supporting documentation; from property and land taxes on property acquired with investment funds under the respective investment project and on land owned or used; and from profit (income) tax on 50% of the profit (income) earned.