GOVERNMENT OF THE REPUBLIC OF MACEDONIA
Directorate for Technological
Industrial Development Zones
LAW ON TECHNOLOGICAL INDUSTRIAL
DEVELOPMENT ZONES
Skopje, February 2007
I. GENERAL PROVISIONS
Subject of the Law
Article 1
This Law shall
regulate the incentives for investing in technological
industrial development zones, the conditions, the manner and
procedure of establishment, the development and operation of
technological industrial development zones, the activities
performed in the technological industrial development zones
and the special conditions for their performance, the
application of the customs regulations in the technological
industrial development zones as well as the termination of
operation of the technological industrial development zones
and of the user of the technological industrial development
zones.
Purpose of the Law
Article 2
The purpose of this
Law shall be acceleration of the economic development by
attracting foreign and domestic capital for the development
of new technologies and their application in the national
economy, increasing the competitiveness of the Republic of
Macedonia on the foreign trade markets, increasing exports
and increasing employment.
Public Interest
Article 3
The construction and
performance of the works pertaining to the establishment and
operation of the technological industrial development zones
shall be of public interest.
Meaning of Used Terms
Article 4
(1) Certain terms used in this Law shall have the following meaning:
1)
“Tax payer” shall mean a person who pursuant to the
Law on Tax Procedure is defined as such;
2) “Tax authority” shall mean a state administrative body which performs
administrative and other professional maters laid down in
the Law on the Public Revenue Office;
3) "Domestic goods" shall mean goods:
-
Fully obtained in the customs area of the Republic of
Macedonia pursuant to Article 22 of the Customs Law, not
incorporating goods imported from other countries. The
goods obtained from goods placed under suspension procedure
shall not be deemed to have the status of domestic goods.
-
Imported from other countries and released into free
circulation; and
- Obtained or produced in the customs area of the
Republic of Macedonia, whether from the goods referred to
only in indent 2 or from the goods referred to in indents 1
and 2 of this item;
4)
“User of the technological industrial development zone”
shall mean any domestic or foreign natural or legal person
registered for performing activities pursuant to the Company
Law and for the purpose of using the technological
industrial development zone has signed an agreement with the
founder of the technological industrial development zone The
founder of the technological industrial development zone may
simultaneously be a user of a technological industrial
development zone;
5)
“Founder of a technological industrial development zone”
shall be the Government of the Republic of Macedonia or a
domestic or foreign legal person;
6)
“Placing goods for inspection to the customs authority”
shall mean a notification to the customs authority, in a
prescribed manner, about the arrival of the goods at the
customs authority or any other place designated and approved
by the customs authority;
7)
“Foreign goods” shall be goods different than those
referred to item 3 of this paragraph. Domestic
goods taken out of the customs area shall obtain the status
of foreign goods;
8)
“Technological industrial development zone"
(hereinafter referred to as: the Zone) shall be a part of the
territory of the Republic of Macedonia as part of the
customs area, separated from the remaining parts of the
customs area, separately fenced and marked area representing
a functional entity in which activities are performed under
conditions prescribed by this Law and other laws and in
which the customs and tax incentives determined by this Law
and other laws. The technological industrial development zone shall be
created with a view to the development of high propulsive
and modern technologies by introducing economically
profitable production and efficient use of the resources by
application of the highest environmental standards. The
technological industrial development zone shall be a free
zone from the aspect of the Customs and Tax Laws.
9)
“Customs allowed act or use of goods” shall mean:
a)
Placing goods under a customs procedure;
b)
Entry of goods in a zone or a free warehouse;
c)
Re-export of goods from the customs area;
d)
Destruction of goods; and
e)
Renouncing of goods to the benefit of the state.
10)
“Customs debt” shall be an obligation of a person to pay
the amount of import duties (customs debt on import) or
export duties (customs debt on export) prescribed for
certain goods according to the regulations of the Republic
of Macedonia;
11)
“Customs control" shall mean performance of the
specific activities such as: examination
of goods; verifying the existence, reliability and accuracy
of the documents; examination of accounting books and other
records; examination and search of means of transport;
examination and search of personal baggage and other goods
that persons carry with or on themselves; carrying out
official procedures and other similar acts with a view to
enforcing customs regulations, and when necessary, other
regulations applicable for goods subject to customs
supervision;
12)
“Customs supervision” shall mean general measures
undertaken by the customs authority for the purpose of
ensuring implementation of the customs regulations, and when
necessary, other regulations applicable for goods subject to
customs supervision;
13)
“Customs authority" shall be an organisational unit
of the Customs Administration laid down by law which is
competent for the application of the customs or other
regulations where some or all the prescribed formalities may
be carried out;
14)
“Customs procedures” shall be:
- Releasing
of goods into free circulation;
- Transit;
-
Customs
warehousing;
- Inward
processing;
- Processing
under customs control;
- Temporary
import;
- Outward
processing; and
- Export.
15)
“Customs regulations” shall be the Customs Law and
bylaws adopted on the basis of this law.
(2) For the purposes of this Law, the use of singular shall
also include plural, while plural may also refer to
singular, except when the words “only” or
“except” do not exclude plural or singular.
II. INCENTIVES FOR INVESTING IN THE TECHNOLOGICAL
INDUSTRIAL DEVELOPMENT ZONE
Tax Exemptions and
Relieves and Procedures
Article 5
(1) The tax payer, user of the zone shall be eligible for
exemptions and relieves from payment of:
1) Profit Tax pursuant to the
provisions of the Law on Profit Tax; and
2) Personal Income Tax
pursuant to the provisions of the Law on Personal Income Tax Law.
(2)
The provisions of the Law on Value Added Tax referring to
the free zones shall appropriately apply for the
technological industrial development zones.
Customs Exemptions and
Relieves
Article 6
(1) The founder and/or the user of the zone shall be
eligible for customs exemptions and relieves pursuant to the
provisions of the Customs Law, unless otherwise provided by
this Law.
(2) The user of the zone carrying out
production activities and Information Technology related
activities (software development, hardware assembly, digital
recording, computer chips, etc.), scientific research
activities and production based on new technologies with
high environmental standards shall be exempt from the
obligation of submitting a guarantee as a security
instrument for the customs debt incurring or that may incur
after the determination of the customs allowed procedure or
use of the goods.
(3) The exemptions or relieves referred to in paragraph
(1) of this Article shall not apply to alcohol and alcoholic
beverages, as well as to tobacco and tobacco products.
(4) The user of the zone may use the customs
exemptions and relieves for foreign goods used as equipment
pursuant to Article 42 of this Law.
Article 7
The user of the zone shall realize the exemptions and relieves laid down
in Article 5 and 6 of this Law for conducting:
1) Production activities;
2) Information Technology related activities (software development,
hardware assembly, digital recording, computer chips, etc.),
scientific research activities and production based on new
technologies with high environmental standards; and
3)
Services directly related to the importation of goods which
enter the zone, provided that the goods are not intended for
end use.
Other Incentives
Article 8
(1) The user of the zone carrying out any of the activities laid
down in Article 7 of this Law, shall also be eligible for
the following incentives:
1)
By
way of derogation from the provisions of the Law on
Construction Land, the founder or users of the zone are
exempt from paying a fee for regulation of the construction
land;
2)
The
fee for regulation of the construction land, of which the
users of the zone are exempt, shall be indemnified by the
Government of the Republic of Macedonia to the benefit of
the local self-government units;
3) The land in the zone shall be leased to the founder of
the zone for a period of up to 50 years with the possibility
for a 25 year extension;
4) The lease period of the land and the amount of rent for
the leased land shall be determined by the Government of the
Republic of Macedonia on a case to case basis;
5) By way of derogation from the provisions of the Law on
Protection and Rescue, the user of the zone shall be exempt
from the obligation to build a shelter during construction
of facilities within the zone, as well as from paying a
contribution fee for the construction, maintenance and
equipping of the shelter;
6)
The
Government of the Republic of Macedonian may have a share in
the costs for constructions of a construction facility for
the user of the zone – companies from the current list of
Fortune Global 500 and Business Week Global 1200, of up to
100%, but not more than 500,000 EUR in denar counter-value.
7)
The
constructed facility referred to in paragraph (1) item 6 of
this Article shall be the ownership of the Republic of
Macedonia to the percentage equivalent to the participation
of the Government of the Republic of Macedonia in its
construction, while the users of the zone shall only use the
facility until they use the land, i.e. until they are
operating.
(2) The Government of the Republic of Macedonia shall decide on
the fulfilment of the conditions referred to in paragraph
(1) item 6 of this Article, upon proposal of the Directorate
for Technological Industrial Development Zones, within a
period that cannot be longer than 30 days from the date of
submitting the proposal.
(3) The user of the zone shall be bound to start construction on
the land granted for use within 9 months from the signing of
the lease contract, and to finish construction and start
production within 30 months at the latest.
(4)
The lease contract for the land may be unilaterally
terminated if the lessee of the land does not start
construction on the production facility within 9 months from
the date of signing the lease contract and if production
does not start within 30 months.
Conditions and
Procedures for Exercising Tax Exemptions and Relieves
Article 9
(1) The user of the zone shall exercise tax exemptions and
relieves if the user:
1)
Makes
at least 80% of the annual sales in exports outside of the
Republic of Macedonia;
2)
Performs a new activity, but does not transfer the
activity from another area of the Republic of Macedonia into
the zone;
3)
Has no unsettled levied tax or customs obligations; and
4)
Is not under a bankruptcy procedure.
(2) The value of the goods and services produced i.e. performed in
the zone shall be determined on the basis of invoices and
other documents issued by the user of the zone.
(3) The value of the performed export of goods and services shall
be determined on the basis of export customs declarations.
The user of the zone is obliged to submit the export customs
declaration to the Directorate for Technological Industrial
Development Zones.
(4) For the purpose of exercising tax exemptions and relieves
referred to in Article 5 paragraphs 1) and 2) from this Law,
the user of the zone shall submit a tax return to the
competent tax authority through the Directorate for
Technological Industrial Development Zones.
(5) Pursuant to paragraph (4) of this Article, the user of the
zone shall attach to the tax return:
1) The contract for performing activity with the founder of the zone;
2) The decision referred to in Article 29 paragraph (4), or the decision
referred to in Article 31 paragraph (1) of this Law;
3) The income statement for the previous year, except for legal subjects
established during the current year;
4) Proof from a competent authority that the user is registered for
performing business activities;
5) Certificate issued by a competent authority that the user of the zone
has no levied and unsettled tax or customs obligations;
6) Certificate issued by a competent court that the user is not under a
bankruptcy procedure.
(6) The proof referred to in items 1), 2) and 4) of paragraph (5)
of this Article shall be submitted within 15 days after
receiving the decision to commence operation from the
Directorate for Technological Industrial Development Zones,
with a view to entering the user into the Register of Tax
Incentive Users.
(7) The proof referred to in items 3), 5) and 6) of paragraph (5)
of this Article shall be submitted each year of the
operation in the zone, by 31 March of the current year at
the latest.
(8) If the conditions of this Article have been met, the
tax authority shall issue the user an act for an appropriate
tax exemption and relief and it shall also submit it to the
Directorate for Technological Industrial Development Zones
within 8 days of its adoption.
III. CONDITIONS AND MANNER OF ESTABLISHING A TECHNOLOGICAL
INDUSTRIAL DEVELOPMENT ZONE
General Conditions of
Establishing a Technological Industrial Development Zone
Article 10
(1) The Zone shall be established if:
1) The spatial, energetic, technical and other conditions prescribed for
performing activities in the zone are provided;
2) Manufacturing technological processes, production and storage of
goods, i.e. providing services that are harmful to the
environment and to the nature are not performed;
3) The founder of the zone provides the required initial capital for
establishing the zone.
(2) The conditions for establishing the zone referred to in
paragraph (1) item 1) of the Article up to the borders of
the zone shall be provided by the Government of the Republic
of Macedonia.
(3) The founder of the zone shall provide the funds for
establishing and commencing operation of the zone, as well
as appropriate spatial, environmental, energetic, technical
and other conditions for performing activities in the zone
and shall adopt its act of establishment.
(4) The founder of the zone, except when the founder is
the Government of the Republic of Macedonia, shall register
a trade company performing economic, technical,
administrative and other affairs related to the performing
of activities in the zone.
Spatial Conditions for
Establishing a Technological Industrial Development Zone
Article 11
(1) The Zone shall be established on an area designated by a
spatial plan or an urban plan of land owned by the Republic
of Macedonia as a site of public interest. The zone may be established inside or outside of an urban area.
(2) The zone may consist of several separate parts of
the territory of the Republic of Macedonia, each of which
constitute an economic and functional entity and each shall
be fenced and marked.
IV. DIRECTORATE FOR TECHNOLOGICAL INDUSTRIAL DEVELOPMENT
ZONES
Competences of the
Directorate for Technological Industrial Development Zones
Article 12
(1) The activities related to the establishing, development and
monitoring of the zones shall be carried out by the
Directorate for Technological Industrial Development Zones
(hereinafter referred to as: the Directorate).
(2) The Directorate shall perform the following activities:
1)
Planning and development of the zones and providing
conditions for utilisation of the area;
2)
Issue approvals for establishing zones;
3) Promotion and advertising of the zones and public relations;
4) Attract founders and users of the zone;
5) Keep records of the activities of the area of the zone;
6) Adopt decisions for commencement of operation by the user of the zone;
7) Adopt decisions for termination of the decision for operation;
8) Adopt a tariff on fees for services provided by the founder and a
tariff on fees for services provided by the user, on which
the Government of the Republic of
Macedonia shall give its consent. The fee amounts
shall be determined depending on the amounts of incurred
expenses.
9) Establish co-operation with the state administrative bodies, public
enterprises and trade companies related to the zone and
thereby ensure:
- Consents, approvals, permits, or more
precisely certificates determined by special legal
requirements for the establishing, commencement of operation
and operation of the zone;
- Supervision over the functioning of
the infrastructure in the zone;
- Protection of public safety and
safety of the persons and property in the area of the zone;
and
- Protection from illicit trade.
10) Approve the Act referred to in Article 34 of this Law;
11) Monitor the operation of the zone and when necessary propose measures
to the Government of the Republic of Macedonia;
12) Keep records of all the
leasing and subleasing contracts between the founder and the
users, provided by the founder of the zone;
13) Perform all affairs, other than those that require the founder and/or
the user to have a prior permit, consent or approval by a
competent authority pursuant to law; and
14) Perform all other activities related to the functioning of the zone.
(3) The Directorate shall have legal personality.
(4) Where the Government of the Republic of Macedonia
is the founder of the zone, the Directorate shall perform
the activities within the competences of the founder of the
zone, on behalf of the founder
Article 13
(1) For the purpose of implementing the activities within its
competence, the Directorate shall adopt an annual programme
and financial plan, for which the Government of the Republic
of Macedonia shall give its consent.
(2) The Directorate shall submit the annual programme and
financial plan for the following year referred to in
paragraph (1) of this Article to the Government of the
Republic of Macedonia by 30 November of the current year at
the latest.
(3) By the end of May of the current year, the
Directorate shall prepare a report on the operation of the
zone in the previous year and shall submit it to the
Government of the Republic of Macedonia for adoption.
Director of the
Directorate
Article 14
(1) The Directorate shall be managed by a Director who shall be
appointed and dismissed by the Government of the Republic of
Macedonia.
(2)
A
person meeting the following conditions may be appointed as
a Director:
-
To have university degree at least,
- To have at least five-year working experience,
- To have at least three-year working experience at a
managerial post,
- To have active use of the English language and
-
To
have experience in cooperation with international
organisations and institutions.
(3) The Director shall be appointed to a term of four
years.
Article 15
The Director of the Directorate shall perform the following activities:
- Represent and advocate the
Directorate;
- Organise the work and manage
the professional units of the Directorate;
- Execute the decisions of the
Steering Committee;
-
Ensure the legal operation regarding
the competences laid down in Article 12 of this Law;
- Harmonise the business
activities of the Directorate;
- Prepare the annual programme
and financial plan of the Directorate;
-
Prepare reports on the
operation of the zone in the previous year;
-
Propose to the Steering
Committee and implement the general acts of the organisation
and systematisation of the work of the Directorate;
-
Adopt single acts for the
employees in the field of labour relations; and
- Decide on other issues
regulated by this Law and the Statute of the Directorate.
Article 16
(1) Each six months, the Director shall be bound to submit a
report on the work of the Directorate to the Government of
the Republic of Macedonia.
(2) In the report referred to in paragraph (1) of this Article,
the Director shall be bound to provide data on the type and
scope of the work performed while performing the duties of
the Directorate.
(3) When the report of the work of the Directorate shall
establish deficiencies and/or loss in the financial
operations of the Directorate, the Director shall be bound
to eliminate them in the following six months.
Article 17
The Director of the Directorate shall be dismissed before the expiry of
the term in the following cases:
- At his/her request;
-
If s/he fails to work and act
according to the Law, Statute and the Acts of the
Directorate or unjustifiably fails to implement the
decisions of the Steering Committee or acts contrary to
them;
-If by negligence or
misconduct, the Director causes disturbances in the
performing the activities of the Directorate and causes
damages;
-If s/he neglects or fails to
perform the duties thereby causing disturbances in
performing the activities of the Directorate of public
interest;
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