The Parliament has adopted bill "On Free Industrial Areas" and amendments in concomitant laws, worked out by office of Kakha Bendukidze, State Minister for Economic Reform Coordination.
According to the law, free industrial area may be created by initiative of the government or any legal/physical entity, registered in Georgia (but not in free industrial zone), on the area, which exceeds 10 ha (except protected territories).
After appropriate documents' presentation, the government will make decision within 50 days.
In case of government's initiative, the area will be created on the land plot, owned by state or self-government body, handed in leasing for no more than 59-year, under property or constructing disposal (organizer should be selected through tender).
The law permits production in free industrial zone of any goods, except arms, ammunition, drugs and psychotropic agents. Prohibition concerns as well excise goods' import, storage, production and realization in zone (except for local consumption). Providing financial, legal and other kind of services is available.
Zero regimes apply for profit tax for those only companies/persons, which do not have any business relations with Georgia, as well as for property tax for all. Transactions, performed in free zones, and import of foreign goods there will be not subject to VAT. Income tax should be paid by hired employee. Settlements are permitted to be carried out in any currency.
Law "On Free Industrial Areas" will enter in force from January 1, 2008, except the paragraphs, envisaging additional arrangements (rules of zone arrangement, simplified rules of construction, working out amendments in Tax and Customs Codes, etc.).
