On basis of the agreement On Investments into Public Infrastructure of Ventspils Free Port, it is possible to discuss public investment by the Free Port Authority.
Private Public Investment Partnership
Ventspils Free Port Authority is open for discussions about covering the costs for works on the land plot such as melioration and ground levelling (if necessary), topography, geological research, road and railway infrastructure, parking places, utility infrastructure like water supply, sewerage, electricity, telecommunications, etc.
The total sum of the public investment is divided into 30 equal parts according to the period of concession agreement. Each year 1/30 of the total sum of public investment is added to concession fee.
Tax Incentives
According to the law On Tax Application in Free Ports and Special Economic Zones, licensed companies are entitled to the direct and indirect tax rebates. There are massive tax reductions for indirect taxes like value added tax, excise tax and customs duty.
Direct taxes - Real Estate tax (1.5%) and Corporate tax (15%) are decreased even by 80% until compensation of 50% (70% to small enterprises and 60% to medium enterprises) of total investment sum. That actually means that applied Corporate tax rate is 5% and the Real Estate tax 0.3%.
The law On Tax Application in Free Ports and Special Economic Zones, as well as the provided incentives, are entirely in line with the regulations of EU and the decision making process regarding issuing of free zone license is in force at least till 2017. The incentives are applicable afterwards as well.
Example:
|
Investments |
10 mln |
|
|
Gross Profit |
1 mln |
|
|
Real Estate values |
1 mln |
|
|
|
|
Corporate Tax |
150 000 |
Standard Rate in Latvia |
|
Real Estate Tax |
15 000 |
|
Total: |
165 000 |
|
|
|
Corporate Tax |
50 000 |
Applied Rate in FreePort |
|
Real Estate Tax |
3 000 |
|
Total: |
53 000 |
In this case savings per year amount to 165 000 – 53 000 = 112 000, which are subtracted each year from the half of investments (in this case 5 mln.), thus showing the still possible amount of rebate.
Municipal Assistance
As one of the main goals, Ventspils authorities have set the development of industry in the city. Considering that, Ventspils City Council together with the Free Port of Ventspils Authority support all kinds of industrial/manufacturing developments and welcome enterprises willing to set up their business in Ventspils.
Each project is designated a qualified project coordinator from the city, who is there at company's disposal any time and free of charge to help timely solve all necessary municipal issues. Such assistance helps companies to save time and money while starting up the project.
Additional information: Free Port of Ventspils Authority Tel.: +371 63602334 Fax: +371 63621297 www.portofventspils.lv |