LAW
of Ukraine
On
the Special Economic Zone «Zakarpattya»
This Law
difine the order of creation, functioning and liquidation of the
special economic zone “Zakarpattya”.
Article
1. The creation of the special economic zone “Zakarpattya”
The aim of
creation of the special economic zone “Zakarpattya” is attracting
of investments, promotion of foreign economic ties development,
increase in the deliveries of high quality goods and services,
creation of modern industrial, transport and market infrastructure.
The special
economic zone «Zakarpattya» shall be formed on the territory of
Transcarpathian region covering the area of 737,9 ha in accordance
with the map of the region for the term of 30 years.
Special customs,
taxation and other regulations shall be established on the territory
of the special economic zone in accordance with this Law for the
term stated in second half of this article.
Article
2. Peculiarities of effecting of legislature of Ukraine in special
economic zone “Zakarpattya”.
The legislation
of Ukraine in the special economic zone «Zakarpattya» shall be
effected with due regard for the specific peculiarities stipulated
by the Law of Ukraine «On the General Provisions concerning the
Formation and Functioning of Special (Free) Economic Zones» and
this Law.
In case of
changes in the legislation of Ukraine, the regime, stated in this
Law, is changed, tax payer is entitled to apply for the conditions,
that acted on the moment of his state registration on the territory
of the zone.
Article
3. Bodies of power of special economic zone “Zakarpattya”
The bodies
of power in the special economic zone «Zakarpattya» shall be:
the Transcarpathian
Regional Council (Zakarpats’ka Oblasna Rada) and
the Transcarpathian
Regional State Administration;
the Body
of the economic development of the special economic zone «Zakarpattya».
Article
4. The authority of Transcarpathian Regional Council land Transcarpathian
Regional State Administration on management of the special economic
zone “Zakarpattya”
The Transcarpathian
Regional Council and Transcarpathian Regional State Administration
exercise their authority in keeping with the legislation of Ukraine
with due regard for the specific peculiarities determined by this
Law.
The authority
of the Transcarpathian Regional Council shall also comprise:
- submitting
proposals concerning changes in the regulations of economic activities
on the territory of the special economic zone «Zakarpattya» in
keeping with the procedures set by the legislation of Ukraine;
- making
contracts with the Body of the economic development of the special
economic zone of «Zakarpattya» on the transfer of land into its
tenure, objects of infrastructure located on this territory and
natural resources of local significance.
Article
5. The Body of development of special economic zone “Zakarpattya”
The body
of the economic development of the special economic zone «Zakarpattya»
(hereinafter referred to as the Body of economic development)
shall be the legal entity authorized or specially formed by the
Transcarpathian regional State Administration in the organizational
and legal form in conformity with the legislation of Ukraine.
The authority
of the Body of economic development shall comprise:
working out
and providing the realization of the strategy and the current
economic development programs (projects) of the zone;
concluding
making agreement (contract) with the investor (investors);
elaborating
and implementing the set of organizational measures to ensure
allocation of financial resources, including the funds of enterprises
and organizations (foreign ones inclusive) as well as charity
funds, those of public organizations and physical entities (persons);
organizing
personnel training and extension courses;
realizing
measures providing law and order, economic and ecological security
on the zone territory together with respective bodies;
arranging
the equipment of the special economic zone;
building
the objects of the industrial and non-industrial infrastructure;
concluding
leasehold agreements concerning land lots and infrastructure objects
with the subjects of business activities within the authority
limits granted by the bodies of local self-government;
realizing
other kinds of authority envisaged by this Law and delegated by
the bodies of local self-government.
Article
6. Peculiarities of conducting of business activities on the territory
of SEZ “Zakarpattya”.
All kinds
of business activities shall be conducted on the territory of
the special economic zone with the exception of the activities
directly forbidden by the legislation of Ukraine.
The formation
of business activities subjects on the territory of the special
economic zone shall be done with the consent of the body of economic
development.
The subjects
of business activities registered on the territory of the special
economic zone must not have any branch offices, subsidiary institutions
and other separated departments beyond the zone borders.
On the territory
of the special economic zone there shall be located enterprises
that carry out operations of transit good services, their storage,
completion, assortment, packaging, rendering transportation –
agent and forwarding dispatching services, trade as well as enterprises
that make use of modern technology with a view of producing goods
for the export and inner market supplies.
The objects
of industrial and non-industrial infrastructure may be located
on the territory of the special economic zone.
The establishment
of the casino, other gambling houses (places) and gambling business
shall be forbidden on the territory of the special economic zone.
Pursuing
business activities liable to licensing on the territory of the
special economic zone shall be effected on the ground of respective
permits (license) issued in accordance with the legislation of
Ukraine.
A fee shall
be paid for the state registration of the subject of business
activities on the territory of the special economic zone the amount
of which shall be determined by the Transcarpathian Regional State
Administration with the consent of the Ministry of Finance of
Ukraine. The amount of the said fee shall be equal for all subjects
of business activities of the same kind.
Article
7. Custom regulation and conditions of the value added tax and
axcise payment in special economic zone.
Special customs
zone regulations are established in the special economic zone
of «Zakarpattya».
In the special
economic zone «Zakarpattya» the following procedures for the movement
(transportation into/ transportation out of) of goods and other
objects are established:
in case of
the transportation of goods and other objects (with the exception
of excise tax goods) across the borders of the customs area of
Ukraine to the territory of the special (free) economic zone to
be used within zone boundaries they are exempt from the import
customs duty and value-added tax;
in case of
the transportation of goods and other objects that were previously
brought across the borders of the customs area of Ukraine to the
special economic zone and from this zone to the customs area of
Ukraine, taxation is done in accordance with the legislation of
Ukraine as on the import of goods to Ukraine;
in case of
the transportation of goods and other objects completely produced
or sufficiently processed in the special economic zone to the
customs area of Ukraine from the territory of the special economic
zone value-added tax and excise tax are payable as for the internal
consumption in Ukraine;
in case of
the transportation of goods and other objects produced, inclusive
completely produced or sufficiently processed, in the special
economic zone, from the territory of the zone across the borders
of the customs area of Ukraine they are exempt from export customs
duty and excise tax while value-added tax is paid at the zero
tax rate;
in case of
the transportation of goods, previously brought across the borders
of the customs area of Ukraine to the territory of the special
economic zone, from this zone across the customs area of Ukraine,
export duty tax, value-added tax and excise tax are not payable;
in case of
the transportation of goods and other object from the customs
area of Ukraine to the territory of the special economic zone
export duty tax is not payable while value-added tax is paid at
the zero tax rate;
in case of
the transportation of goods and other objects to the territory
of the special economic zone for the purpose of transit taxation
is paid in accordance with the legislation of Ukraine;
in other
cases taxation is paid in accordance with the legislation of Ukraine.
Whether goods
satisfy the criteria as fully produced or sufficiently processed
in the special economic zone shall be determined on the basis
of Article 18 of the Law of Ukraine «On the Uniform Customs Tariff».
The term
of the goods storing in the special economic zone shall not be
limited with the exception of cases concerning the goods and other
objects with a limited term of storage.
The customs
value of goods and other objects listed in point «b» of this Article
shall not include the cost of services connected with shipment
(transport) of goods, their storage, completion, assortment packaging,
etc. done on the territory of the special economic zone. The said
services shall be exempt from the value-added tax.
This article
shall not be applicable for the exchange of goods (barter) operations.
Customs control
of the goods transport across the borders of the special economic
zone shall guarantee the observance of the goods transport regulations
by the state bodies, enterprises, offices and organizations, their
officials as well as citizens in keeping with the legislation
applicable on crossing the border of Ukraine taking into account
norms specified by this Law.
In order
to prevent the non-sanctioned and non-controlled penetration of
the physical persons, transport means, as well as bringing inside
to the territory of the special customs zone or taking outside
goods and other objects, beyond its borders, the territory of
the special customs zone shall be guarded with barriers on the
perimeter and shall be equipped to meet the requirements of the
State Customs Service of Ukraine.
The State
Customs Service of Ukraine shall determine the territories of
customs control zones for the special economic zone, their boundaries
and regulations of transport of goods, means of transport, citizens.
Customs duties
in the special economic zone shall be paid in keeping with the
legislation of Ukraine.
The body
of economic development shall finance the organization of customs
and the special customs zone barriers.
The regulations
of the special customs zone shall be put into effect pursuant
the date of the approval of the Act on putting into operation
the objects of the customs infrastructure by the State Customs
Service of Ukraine.
The import
of goods to the territory of the special economic zone by the
subjects of business activities to meet the needs of their own
production and the export of goods completely produced or sufficiently
processed in the special economic zone shall not be liable to
licensing and quoting unless the international agreements of Ukraine
otherwise stipulate.
The regulations
concerning the export (import) of goods and other measures of
non-tariff regulations of foreign economic activities shall be
valid in respect to foreign economic operations pursued in the
special economic zone in keeping (agreement) with the legislation
of Ukraine.
The Cabinet
of Ministers of Ukraine may establish limitations on the transportation
of some kinds of goods to the customs area of Ukraine from the
territory of the special economic zone and on their transportation
from the customs area of Ukraine to the special economic zone.
Article
8. The taxation and currency regulations in special economic zone
“Zakarpattya”.
Special preferential
taxation (tax deductions) regulations shall be established in
the special economic zone of «Zakarpattya»:
a) the duties
of the income payers on the revenues registered in the special
economic zone shall be payable at the rate of 20 per cent to the
object of taxation;
d) profits
made by non-residents from the source originating in the zone
as a result of business activities shall be subject to taxation
at the 2/3 rate established in Article 13 of the Law of Ukraine
«On the Taxation of Enterprises’ Income». This normative shall
be invalid in respect to profits generated by involving investment
activities into securities issued at the decision of the authorized
state body or local self-government and to profits listed in point
13.6 of the Law of Ukraine «On the Taxation of Enterprises’ Income»;
f) taxes
to the State Innovation Fund shall not be payable.
Special preferential
taxation (tax deduction) regulations shall be applied to the subjects
of business activities registered in the special economic zone
in respect to the volume of the activities pursued in this zone.
Revenue in
the foreign currency gained from the realization of products,
goods (work, services), produced or offered in the special economic
zone shall be exempt from the compulsory sale.
Article
9. Order of entrance in special economic zone “Zakarpattya”
The Ukrainian
Cabinet of Ministers may establish special regulations concerning
the crossing of Ukrainian borders by foreign citizens and persons
without citizenship who travel to the special economic zone as
well as special regulations concerning the entry into the special
economic zone and the departure from it of Ukrainian citizens
foreign citizens, and persons without citizenship.
Article
10. Responcibility of the subject of the business activities
In the event
that the investor or the subject of the business activities inadequately
fulfils or fails to fulfil the agreement (contract) terms concluded
with the body of economic development, such an investor (subject
of the business activities) shall bear responsibility stipulated
by the legislation of Ukraine and the respective agreement (contract).
Article
11. Anticipatory liquidation of the
enterprise
In the event
of the liquidation of the enterprise set up in the territory of
the special economic zone or its reorganization (at the decision
of its owner or his proxy) before the term specified in the agreement
(contract) concluded between the investor and the economic development
body, the investor (the person authorized by him) shall be liable
to notify the administrative bodies of the special economic zone
concerning the reasons for the enterprise liquidation (reorganization)
within ten days pursuant the said decision hereof.
Article
12. The order of the liquidation of special economic zone “Zakarpattya”
The special
economic zone shall be regarded as liquidated pursuant to the
expiry term granted at its formation unless it shall be prolonged
in the set procedure.
The special
economic zone may be liquidated before its expiry term in keeping
with the procedure envisaged by the legislation of Ukraine.
Article
13. Guarantees of the protectioning of the interests of investors
and subjects of the business activities in case of liquidation
of special economic zone
The state
shall guarantee the protection in the full volume, as stipulated
by the legislation of Ukraine, of all the ownership and non-ownership
rights of the investors and subjects of business activities pursued
in the zone at its liquidation.
Ukrainian
courts of law shall have jurisdiction to settle any disputes between
the administrative bodies of the special economic zone, subjects
of business activities operating in the zone, investors and the
liquidation committee (commission) arising from and in connection
with the zone liquidation and all other disputes with the foreign
subject of business activities as a party shall be subject to
the courts of law and in the event that parties so agree to those
of foreign arbitration tribunals.
President
of Ukraine L. Kuchma
Kyiv
March,
22 2001
N 2322-III
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