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On The Application Of The Tax Free Ports And Special Economic Zones

Original Language Title: Par nodokļu piemērošanu brīvostās un speciālajās ekonomiskajās zonās

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The Saeima has adopted and the President promulgated the following laws: About the free ports and special economic zones, chapter I General provisions article 1. The terms used in the Act (1) this law applied to Freeport of Riga, Ventspils free port Act of law, Liepaja special economic zone Act and Rezekne special economic zone law, the law "on business for State and local aid control, customs law, the law" on value added tax "and the law" on enterprise income tax "terms used in this law, unless otherwise specified.
(2) the Act, the following terms are used: 1) permission to apply direct tax relief: a) liepajas special economic zone management special economic zone company issued a certificate for the right to apply direct tax relief and the special procedure for State social insurance contributions, b) Rezekne special economic zone management companies in special economic zone company issued permission for the right to apply direct tax relief and the special procedure for State social insurance contributions for the Ventspils free port, c) management company licensed issued certificate for the right to apply direct tax relief and the special procedure for State social insurance contributions, (d)) at the Riga port authority licensed company issued a certificate for the right to apply direct tax relief and the special procedure for State social insurance contributions;
2) Riga free port authority, port authority and Ventspils port authority;
3) licensed company — company (company) that has entered into a contract with the Freeport administration of business or Ventspils free port of Riga free port in the territory of a free zone;
4) indirect taxes, customs duty, natural resources tax, excise duty and value added tax;
5) direct taxes: corporate income tax and real estate tax;
6) accumulated amount of investment — all that area companies or licensed companies in the amount of investment made: a) starting with the tax period, during which it has concluded with the zone or free port administration agreement on investment zone or a free port territory to the tax period (inclusive), for which the calculation is performed, is company liepājas special economic zones or Rezekne special economic zone or a free port of Riga, the company licensed company , b) starting with the date of entry into force of the law to the tax period (inclusive), for which the calculation is performed, is company Ventspils free port licensed companies;
7) accumulated direct tax discount amount — all under this Act used direct tax discount amount, starting with the tax period, during which the area licensed company or company-issued permission to apply direct tax relief, to the tax period (not included), for which the calculation is performed;
8) zones administration-Liepaja special economic zone and Rezekne special economic zone management company;
9) area — the territory of Liepaja special economic zone law or Rezekne special economic zones law laid down in the special economic zone territory;
10) — the territory of Ventspils free port Freeport Freeport of Riga law or statutory Freeport area;
11) area company: Liepaja special economic zone company or Rezekne special economic zone company with which the zone administration concluded the contract for business and investment in Liepaja special economic zone or Rezekne special economic zone territory;
12) area companies or licensed companies investments in companies in the area or licensed companies, as well as the administration of the zone or free port administration of fixed assets (buildings, constructions, technological equipment and machines, unfinished construction objects) the long-term investment total value for the zone and the zone or free port administration company and licensed in a contract concluded by the company for the investment made and used in the zone or free port companies in economic activity in the zone or free port area or zone or a free port activity for at least five years since it the time of the acquisition, as well as to comply with the law "on business for State and local control of aid" given the definition of initial investment.
2. article. The purpose of the law this law determines the order in which you apply: 1) indirect taxes, the free port of Riga free port of Ventspils, Liepaja special economic zone and Rezekne special economic zone;
2) direct tax relief and State social insurance contributions Liepaja special economic zone, Rezekne special economic zone, Ventspils and Riga free port in Freeport.
Chapter II the application of indirect taxes article 3. Application of indirect taxes in respect of supplies of goods and services (1) that a licensed company, the zone, the zone management company or a free port authority or a free port special economic zones in the territory of a free zone (hereinafter referred to as the free zone) in the area of value added tax-taxable persons as well as goods that are exported from a free zone areas liable to value added tax 0% interest rate.
(2) the Latvian goods licensed company, company, area of the zone authority or free port authority supplies another company who is not a licensed company or area the company liable to value added tax rate of 18 percent.
(3) foreign goods licensed company, company, area of the zone authority or a free port authority in the territory of a free zone in another delivery company liable to value added tax 0% interest rate. Foreign goods in a free zone may be imported into the national territory, only the application of the relevant customs procedure in accordance with the customs law.

(4) value added tax by applying a 0% interest rate law "on value added tax" in the form prescribed, are exempt services: 1) the licensed company or a company in the free zone area provided with value added tax-taxable person;
2 free port authority) or area Headquarters provides the value added tax-taxable person.
(5) the importation of goods in free zones from foreign countries and the export of goods to foreign countries applicable to customs duties under the Customs Act.
(6) With excise taxable goods production, processing, storage, transmission, receiving or exercising, as well as the imposition of excise duty of the goods in a free zone territory, respecting the specific excise tax laws and the seventh paragraph of this article.
(7) oil products supply the licensed companies, the zone, the zone administrations, companies or free port administrations, are exempt from excise duty, while the petroleum products are licensed companies, the zone, the zone management company or a free port authority in the territory of a free zone. These oil exempt from excise tax act "excise tax On petroleum products," the cases as well as cases where the licensed companies, the zone, the zone of the company management or management of the Freeport oil products are used: 1) on ships and other floating objects, which are not used for recreation and entertainment needs;
2) celtņo, ceļamkrāno, and other similar objects, which is used only in the territory of a free zone.
(8) construction services Baltimore special economic zone company and Liepaja special economic zone headquarters Liepaja special economic zone territory provides the value added tax-taxable persons liable to value added tax by applying a 0% interest rate for the Cabinet of Ministers.
4. article. Restrictions on retail trade (1) Licensed companies and area companies free zone is prohibited in the territory of the supply of goods and services for natural persons (hereinafter referred to as retail) except: 1) food and medical goods.
2) catering, medical, communications and financial transactions;
3 trade in duty free sales), which are created in accordance with the customs law and the work of the Cabinet.
(2) the first paragraph of this article of the delivered goods in retail trade and services provided to the company in the territory of a free zone subject to value added tax at the rate of 18 percent, excluding the goods and services that are exempt from value added tax in accordance with the law "on value added tax" article 6.
(3) the delivery of the first paragraph of this article referred to in paragraph 1, goods and provide the first part of paragraph 2 the services to natural persons allowed only licensed companies or companies of the zone with the Freeport administration or administration of the concluded contract of the zone on the territory of the zone or the retail trade free port territory. The Treaty to be put up for retail sale, as well as the storage of the goods in question and the spaces reserved for other areas.
Chapter III application of direct tax relief and the State social insurance compulsory contribution article 5. Permission to apply direct tax relief (1) permission to apply direct tax relief shall be granted zone authority or a free port authority in accordance with the procedure prescribed by law.
(2) permission to apply direct tax relief may be granted to companies or licensed area company that meets both of the following conditions: 1) is located in a special economic zone or a free port territory;
2) established only special economic zone or a free port in the territory of a free zone area. For business outside the special economic zone or a free port territory is not considered: (a) zone companies or licensed) the governing bodies of the company or representative office located outside the special economic zone or a free port area b) negotiating the deal and contracts outside the special economic zone or a free port territory, (c)) of the transit special economic zone or a free port area or on the d) other activities, which are not trade-money transaction execution.
(3) permission to apply direct tax relief shall cease to be valid if at least one of the following conditions: 1) ceased as a special economic zone or a free port duration eliminated;
2) terminated this authorization expires;
3) zone or free port authority and a zone or licensed companies agree that the contract is cancelled on the establishment of the zone or free port territory;
4) court annuls zone or a free port authority and a zone or licensed the company's contract for the establishment of the zone or free port territory and revoke the authorisation of this company to receive direct tax relief;
5) is dissolved or a licensed company of the zone, as well as the company ended business in other cases laid down in the national law.
6. article. Real estate tax rebate (1) zone or a licensed company for its property, the legal possession of existing, or use the immovable property, located in the territory of the zone or free port, are entitled to apply for a property tax rebate of 80 percent of the estimated (no other discount application) tax amount, if article 10 of this law provides otherwise.
(2) the decision of the local government area or licensed company for its property, the legal possession of existing, or use the immovable property, located in the territory of the zone or free port, are entitled to apply for a property tax discount of up to 20 percent of the estimated (no other discount application) tax amount, if article 10 of this law provides otherwise.
(3) the real estate tax payment notice refers to the municipality during the tax period shall be paid real estate tax amount, taking into account the first and second parts, set a property tax rebate.

(4) the first paragraph of this article in the real estate tax rebate is taken into account in determining the municipalities financial equalization calculations used in real property tax forecast for the next financial year.
(5) the Zone or free port of Riga Authority Board does not pay real estate tax or any other tax which may be introduced that duty instead of real property situated in the territory of the zone or free port and belongs to the State or the municipality and which is assigned by law to use the zone authority or a free port authority and is not transferred to another user.
7. article. Corporate income tax incentives (1) zone or licensed by the company, the company shall be entitled to apply for a corporate income tax credit in the amount of 80 per cent of the estimated tax amount.
(2) the zone or a licensed company, the company in determining corporate income tax advance payments shall be taken into account in the first paragraph and the proposed tax credit advance payments calculated on the law "on enterprise income tax".
(3) the company or licensed Area the company paying dividends for non-residents, as well as remuneration for management and advisory services and payment for intellectual property, corporate income tax withheld from these payments with an 80 percent discount from the amount of tax calculated.
(4) the zone or licensed companies, the company reduced the corporate income tax the taxable income on the investment made in infrastructure or social objects that belong to the State or the municipality and situated in a special economic zone or a free port, where these investments are made in accordance with the contract concluded with the administration of the zone or free port administration.
8. article. Restrictions on the application of direct tax rebates (1) area company or licensed company in article 6 of this law in the first and second paragraphs of article 7 laid down in the first paragraph of discounts apply during the tax period, when the accumulated amount of direct tax rebates and the tax period in accordance with article 6 of this law, first and second subparagraph, and article 7, first subparagraph, the calculated discount together not more than 50 percent of the area's companies or licensed companies accumulated amount of investment.
(2) If the accumulated amount of direct tax rebates and the tax period in accordance with article 6 of this law, first and second subparagraph, and article 7, first subparagraph, the calculated discount together exceeds 50 percent of the area's companies or licensed companies, the accumulated amount of investment tax credit in the tax period shall apply, having regard to this law, in article 10 and 11 under certain restrictions.
(3) the application of this law, articles 6 and 7 in certain tax deductions to take into account the restrictions set out in the law "on business for State and local governments support the control of State aid to certain sectors and State aid for regional development for large investment projects.
9. article. The application of direct tax relief provisions (1) the right to apply direct tax relief zone company or a licensed company is obtained in the tax period in which the authorised to apply direct tax relief.
(2) the right to apply direct tax relief shall terminate with the taxation period in which permission to apply direct tax relief has lost power.
(3) the company or licensed for the zone and the zone or free port company headquarters corporate income tax and real estate tax the tax period shall be the calendar year. The first tax period may be shorter than a calendar year, but should not be longer than 12 months.
10. article. Real estate tax rebate If application of accumulated direct tax discount amount in conjunction with article 6 of this law, first and second part of the tax period specified in a property tax discount of up to 50 per cent of the accumulated amount of investments, the tax period the real estate tax credit reduces the amount of overrun and the zone or a licensed company, the company shall pay the real estate tax an amount equal to the property tax rebates.
11. article. Corporate income tax discount application (1) where a company or a licensed zone company, calculating the article 6 of this law in the first and second paragraphs of certain real property tax rebates, applied article 10 of this law, it is not entitled to apply this law article 7 laid down in the corporate income tax rebate.
(2) If the accumulated amount of direct tax rebates and the tax period in accordance with article 6 of this law, the first and second subparagraphs and the discount in accordance with the first subparagraph of article 7 of the calculated discount together exceeds 50 percent of the area's companies or licensed companies, the accumulated amount of investments of this excess amount is reduced during the tax period estimated corporate income tax rebate.
(3) in the second case referred to zone companies or licensed companies carried out during the tax period reduction of advance payments, calculated as the difference between the advance payments that would have to be taken to the application of the tax credit in accordance with the second paragraph of this article, the limit set in, and the advance payments in accordance with article 7 of this law the second part, to be considered overdue tax payment for which the principal sum is calculated magnification and late of the law "About taxes and duties".
12. The provision of information on the application of direct tax rebates (1) area company or licensed companies that apply to the direct tax rebates, the State revenue service territorial authority and the municipality of pēctaksācij until March 1 to submit: 1) review of the accumulated amount of direct tax rebates and the accumulated amount of investments;
2) overview of real estate tax rebate application in the tax period.
(2) the zone or licensed companies, the company together with the company's annual report and corporate income tax returns to the law "on enterprise income tax" shall be submitted within the time limit set by the State revenue service territorial institution overview of direct taxation, the application of the tax period.

(3) the State revenue service territorial institution to pēctaksācij October 1 of the year of the first and second subparagraphs shall submit these reports to the State aid monitoring Commission.
(4) in the first and second part of the report referred to in the sample forms approved by the Cabinet, but the method of filling out forms — the State revenue service.
(5) the management of the zone or free port authority until March 1 of the year of the pēctaksācij submitted to the State revenue service territorial institution, the municipality and the State aid monitoring Commission information on zone companies or licensed companies: 1) which have been issued during the tax period permission to apply direct tax relief;
2) which issued permission to apply direct tax relief in the tax period lost power;
3) which goes out of business or activity ceases in accordance with the law "On business".
13. article. The State social insurance contributions (1) the area or company licensed companies for their employees and area companies or licensed companies employed persons by the State social security payments in accordance with the law "on State social insurance", except this article in cases referred to in the second subparagraph.
(2) for the area in the company or in the company of persons employed in licensed-aliens who take the State social security payments or payments pielīdzināmo in your area of the country, company or a licensed company is entitled to carry out State social security payments from amounts that are less than the socially insured person's working income for the month, but not less than the minimum monthly salary of fifteen. The amount is calculated from the State social security payments, the zone or a licensed company, the company and the person concerned shall agree in writing.
(3) companies in the zone or licensed companies employed individuals which are made to reduce the country's social insurance contributions, you can get all of the law "on State social insurance" and other statutory warranties and services under these persons carried on the State social insurance compulsory contributions.
Transitional provisions 1. Construction services with value added tax-taxable person outside the free zone areas provide free administration or the administration of the zone until 2003 December 31 of the applicable value added tax 0% interest rate.
2. Permission to apply direct tax relief to which areas companies issued by 2001 December 31, shall be considered as valid.
3. the area companies until 2001 31 December acquired the status of the company and of the zone which until 31 December 2001 issued permission to apply direct tax relief and the Riga free port licensed companies by 1 January 2003, subject to the restrictions laid down in this Act in direct taxation.
4. in article 6 of this law does not apply to licensed companies, which the administration of Ventspils free port operating licence is issued before the date of entry into force of the law.
5. Liepaja special economic zone and Rezekne special economic zone companies that until this date of entry into force of the law for corporate income tax for the purposes of calculating the economic activity to be used in the fixed asset depreciation is calculated at rates that are different from the law "on enterprise income tax", in respect of those assets that were acquired before the entry into force of the law, the relevant fixed asset or fixed asset categories for the complete depreciation write-off above shall continue to apply the appropriate depreciation rates of fixed assets. Fixed assets used in business operations, which were acquired after the date of entry into force of the law, depreciation write-offs made to the law "on enterprise income tax" prescribed in general order.
The law shall enter into force on 1 January 2002.
The Parliament adopted the law of 27 July 2001.
State v. President Vaira Vīķe-Freiberga in Riga august 10, 2001, the law shall enter into force on January 1, 2002.