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Another 22 projects added to Localization Program

14 May 2014

By the Cabinet of Ministers Resolution it is decided to include another 17 enterprises with 22 projects into the Localization Program for production of finished products, components and materials for the years 2014-2016.

The document has been adopted in order to further deepen the localization of production of competitive finished products and components with local raw materials.

The Regulation provides a List of localization projects, included in the Program, implemented at enterprises, for manufacture of consumer products, capitalized products and components, and raw materials.

As noted in the document, these companies are exempt until January 1, 2017 from paying customs duties (except customs clearance fees) - for imported technological equipment and spare parts, components not produced in the country, used in technological process of localized products manufacture.

During this period, they will not pay income tax, single tax payment (for entities applying the simplified taxation system) - in terms of products manufactured through localization projects, as well as property tax - in terms of the basic production assets used to manufacture localized products.

These benefits apply: on customs fees from May 12, 2014, and on taxes - from 1 June 2014.