PowerPoint prezentacija

1
(No Transcript)
2
What the Free Zones are?

• Free zones in Serbia are highly developed centers
  of infrastructure equipped land with logistic
  support prepared to attract production and
  technology investment.
• In Free zone areas are offered business
  advantages -
• Custom Duties and TAX releasing's

3
The Free Zone regulations

• GATT (general Agreement of Tariffs and Trade)
• Kyoto convention and revised Kyoto convention -
  1999 year - on the simplification and
  harmonization of customs procedures
• Customs Community Code EU
• National Free Zone Law from 2006. year

4
Incentives by the law

• Business free of CUSTOM DUTIES
• Business free of VAT
• Business free of Corporate profit tax

5
Free zones Serbian idea?
6
Why do Free Zones exist?

• Attract INVESTMENTS in the undeveloped regions
• Increase EMPLOYMENT
• Increase PRODUCTION and EXPORT
• Provide to companies SAVING in business (duty,
  tax, stimulate measures of economic policy)
• Concentrate services in LOGISTICS CENTERS

7
Serbia advantages

• Location on Pan-European corridor 10 represents
  link of Europe and Middle East.
• Unemployed, educated and professionally skilled
  workers
• Simplified regulations on foreign trade and
  investments
• Fast company establish procedure
• Lowest corporate profit tax rate in Europe- 10 -
  In Free zones 0

8
Free trade agreements
European Union
EFTA
Russia
Kazakhstan
USA preff. trade regime
CEFTA
Turkey
Belorussia
9
Free Zone benefits...

• Free of customs duties (and other import charges
  for goods, equipment, raw material and
  construction material)
• Fiscal benefits (exemptions from any tax burden
  for FDI, VAT, company profit tax, property tax,
  income tax)
• Efficient administration (one stop shop)
• Local infrastructure subsides (low price and
  service costs)

10
Free zones in Serbia

Pancevo
Existing In preparing
11
New incentives provided by the state

• In Free Zones Corporate Income Tax 0
• Exemption from VAT on energy sources for
  production activities in the zone (Gas, Electric
  energy, Mazout, Coal)
• Announced new incentives from the state
• Exemption from the corresponding part of the
  salary tax
• Exemption from VAT on goods and services trade
  within the free zone

12
Free zone effects 2010/2011

• Export increase for 32
• Companies in Free zones increase 17
• Turnover increase 77
• Workers up for 60
• Investments up 275

13
Export from Free zones in Serbia 2010
14
211 companies in Free zones in Serbia

Pancevo
15
Free zone Subotica

• The Subotica Free Zone is located in the northern
  part of Serbia - border with Hungary and the EU
• The E-75 international highway with rail line
• The Subotica Free Zone was founded in 1996
• 15 hectares of land
• 13.000 square meters of production space
• 26.000 square meters of closed storage space
• 313 square meters of office space
• City water supply,
• Two transformer sub-stations with 2x630 KW
• Telephone lines
• Projected connection to local gas lines

16
Free zone Šabac

• Free zone position 25km from the highway E70, 30
  km from the Bosnian border, 70km from border with
  Croatia
• The main  economic potential are River Sava and
  Drina
• Total area of the zone is  3,991m², and will be
  extended this year.
• Greenfield area is around 2,3 ha
• Outdoor storage space 6,700m²
• Indoor storage space is 5,000m².
• Free zone is fully equipped with infrastructure
  with wide range of logistic services.

17
Free Zone Zrenjanin

• Zrenjanin Is the city in Vojvodina with most
   water flows in its area ( The Danube , The Tisa
  , The Begej, The Tamis, also the river canal
  network Danube-Tisa-Danube)  which puts him among
  the most attractive cities for investing in
  Serbia, according to USAID, SIEPA and American
  Chamber of Commerce.
• The Free zone covers an area of 6 hectares
• 400m² is for office space, 
• 6000m² for warehouses and
• 5000m² for open storage space.

18
Free Zone Kragujevac

• Free zone Kragujevac was founded on the 5th of
  November 2009, by the City of Kragujevac and FIAT
  automobile.
• Basically, this zone is founded to endorse the
  development of the automotive industry in Serbia.
  
• Free zone has around 157ha of land and includes
  total area of the automobile factory . 
• There are 200 parcels intended for FIAT
  subcontractor companies

19
Free Zone Užice

•  Free zone Užice is founded by the City of Užice,
  Copper mill AD. Sevojno and Impol-Seval Aluminum
  mills a.d.  Sevojno
• This is the 5th free zone founded in Serbia with
  many business benefits for all investors.
• The main economic potential is metal and metal
  processing industry. 

20
Free zone Pirot

• Established in 1996
• Total area 103 ha
• 9 production and 100 trade entities with 5.000
  employees
• Product export oriented free zone main users
  Tigar A.D. and Tigar Tyres (part of MICHELIN
  group)
• Services in free zone forwarding service and
  organization of intermodal transport
• Turnover within the Free zone in 2010 around
  360.000.000 Eura

AWARDED - BEST OF SERBIA 2009-2011
21
Biggest export from Serbia
9 production plants - 8000 trucks per year
22
Benefits from local municipality

• Construction activities investor is exempted
  of
• Fees for development of building land
• All taxes and expenses of Municipal
  Administration (communal fees, town planning
  permits, town planning approval, building permit,
  etc...)
• During the utilization of facility for the period
  of 5 years investor is exempted from
• paying local communal taxes
• fees for using city building land
• 50 expenses for communal services
• shall be entitled to deduct the rental price of
  land in relation to the number of newly employed
  workers
• Releases 50 of Property Tax for new users of the
  Zone
• Releases 30 of the corresponding part of the Tax
  on salaries of workers employed in manufacturing
  companies which employ 200 or more employees.

23
Logistic and Intermodality In Serbian Free zones
24
Free zones and Logistic in RS

• Law on Spatial plan of Serbia from 2010 to 2020
  (Official gazette RS 88/10) http//www.rapp.gov.rs
  /media/zakoni/Zakon_o_prostornom_planu_RS-cir.pdf
  support all Free zones location for construction
  of intermodal terminals and recommend all free
  zone in view goods flow generators in article
  327. Intermodal transport and logistic centers
  (page 272 in Law)
• Strategy for development of rail, road, water,
  air and intermodal transport in Republic of
  Serbia from 2008. to 2015 (Official gazette RS
  55/05, 71/05 i 101/07) http//www.putevi-srbije.r
  s/strategijapdf/Strategijatransport_lat.pdf in
  article 4.2. Guidelines for the development of
  intermodal transport (page 39) in accordance with
  EU guidelines are given for the consideration of
  locations (11 conditions) and define the
  necessary infrastructure (7 conditions)
  recommend terminal location in Free zone

25
Use of EU Model and Grants for construction
26
New project Intermodal Logistic Terminal on the
Corridor X Free zone Pirot
27
www.usz.gov.rs Z?r?n Vucic, p?m?cnik
direktora ??l. 011/311-73-93, zoran.vucic_at_usz.gov
.rs Upr?v? z? slobodne z?n?, ?ml?dinskih brig?d?
1, 11000 Beograd ??l. 011/311-73-26,
011/311-73-27, F?x. 011/311-73-88