TECHNOLOGICAL INDUSTRIAL DEVELOPMENT ZONES (TIDZ’s) – FREE ZONES Viktor MizoViktor Mizo CEO, Free Zones AuthorityCEO, Free Zones Authority August, 2014.

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Presentation transcript:

TECHNOLOGICAL INDUSTRIAL DEVELOPMENT ZONES (TIDZ’s) – FREE ZONES Viktor MizoViktor Mizo CEO, Free Zones AuthorityCEO, Free Zones Authority August, 2014

Technological Industrial Development Zones - Overview  TID Zone is a special customs area, part of the territory of Macedonia, in which special customs and tax incentives prescribed by the Law on TIDZ are applied  User of TID Zone can be any domestic or foreign entity registered in accordance with the Company Law  Incentives in the Zones are applied only for the following activities: - Production activities - IT and R&D activities  15 TID Zones are planned in the DTIDZ – 3 year Program: - 3 fully operational (Skopje 1, Skopje 2 and Stip) - 1 Public Private Partnership (Tetovo) - 11 others in different development stage

Global Free Zones of the Future 2012/2013 Winners fDi Magazine fDi Magazine’s Global Ranking of Economic Zones reported Technological Industrial Development Zones Skopje 1 & 2 in the top 50 Free Zones of the Future 2012/2013

Investment Opportunities Free Zones Free Zone Tetovo (PPP) Area Size: 95 ha; Distance from Skopje - 35 km Free Zones Skopje 1, 2 & 3 Area Size: ha; E-75 Highway; Next to the Int’l Airport Free Zone Rankovce Area Size: 40 ha; Corridor 8 Free Zone Stip Area Size: 208 ha; The largest Free Zone; Excellent logistic support Free Zone Radovis Area Size: 10 ha; Main Road M6 Free Zone Strumica Area Size: 23 ha; Free Zone Gevgelija Area Size: 50 ha; 85 km from the port of Thessaloniki Free Zone Prilep Area Size: 68 ha; Between Prilep and Bitola (4 th and 2 nd largest city ) Free Zone Struga Area Size: 30 ha; Next to the Int’l Airport; 170 km from Durres port Free Zone Kicevo Area Size: 30 ha Free Zones: Delcevo: 21 ha ; Vinica: 26 ha ; Berovo: 17 ha ;

Infrastructure Benefits Electrical grid outlet, new power substation in place Telecommunications network Central heating Lighting Fire safety system Security monitoring system Water, sewage and waste treatment plant Gas pipeline, etc. Investment Opportunities Technological Industrial Development Zones - TIDZs

Connection to utilities, complete infrastructure is available Subsidy of up to €500,000 towards construction costs Green Customs Channel available at border for rapid export from Zone to EU countries Land in the TIDZ is available under long-term lease for a period of up to 99 years Training and job creation grants All incentives are in line with EU regulations TAX TAX RATES TIDZs Outside TIDZs Corporate tax 0% for the first 10 years 10% Personal income tax 0% for the first 10 years 10% Value added tax0% 18% Property tax 0% 0.1% - 0.2% Excise taxes0% 5% - 62% PRODUCT CUSTOMS DUTY TIDZs Outside TIDZs Raw materials0%Up to 15% Equipment0%5% - 20% Fiscal Benefits Investment Opportunities Technological Industrial Development Zones - TIDZs No customs duties & No VAT on imported raw materials, equipment & construction materials

The Free Zone Authority at Your Service… Identification of project specific location factors Cost analysis Identification of supplier base Detailed due diligence University linkages Reference company linkages Recruitment agencies linkages Organization of meetings with legal advisors and financial partners Design and infrastructure approvals Issuing building and operational permits Customs outpost in the Zone Zone infrastructure maintenance and upgrade Support with relevant tax and customs issues Assistance in acquiring visas/work permits Coordination and support in contacts with other state and local authorities Business opportunities analysis One-stop-shop Creating linkages Aftercare One-stop-shop and project management approach Locations, operational costs and competitiveness Labor availability, HR companies and consulting Ensure success! Our Services

Major recent investors in Greenfield sites Plant 1: €10M; 150 employees; Production of armored high-pressure rubber hoses; Plant 2: €11M; 150 employees; Double the capacity and triple the production $40M; up to 500 employees; Production of equipped PCBs for Mercedes, VW, BMW, Renault, Ford, Skoda, PSA $20M; 1,400 employees; Cut & trim plant for car seats €35M; 4,500 employees; Plant for production of wiring harness and electrical management systems Plant 1, TIDZ Skopje 1: €80M; 350+ employees; Exhaust catalyst manufacturer supplying all OEM plants in Europe; The biggest exporter from Macedonia Plant 2, TIDZ Skopje 1: €65M; 300 employees; Set to double production €25M; 600 employees; Production of buses & coaches for the USA and EU markets; Major bus manufacturer in Europe €25M; 3,500 employees; Wire harness automotive supplier; Production of cable installations in Macedonia €35M; 600 employees; 15,000 m² plant; Production of PCBs, metal & plastic housings and final assembly (Daimler, BMW and Audi) €25M; 500 employees; Production of capacitors (consolidation of European footprint) €6M; 1,500 employees; Production of interconnect systems for safety devices and expanding onboard electronics Over $20M; 1000 employees; 15,000 m² plant for production of Airbag Cushions and Modules €10M; 150 employees; Wire harness automotive supplier; Production of automotive cables and wires €15M; 1,000 employees; Production of high-quality cables, solenoids and mechatronic systems €10M; 100 employees; Production of brake discs for the European market €10M+; Up to 400 employees; Ramp-up of up to 400 people; Production of shock absorbers for industrial and railway vehicles

Thank You DIRECTORATE FOR TECHNOLOGICAL INDUSTRIAL DEVELOPMENT ZONES Partizanski Odredi 2 PO Box Skopje Republic of Macedonia Tel.: Cell: Website: