Investment Zones Part 1: Tecnology Development Zones
Technology Development Zones – Technoparks
Technology Development Zones (TDZ*) are areas designed to support R&D activities and attract investments in high-technology fields.
There are 69 TDZs, of which 56 are operational and 13 have been approved and are currently under construction.
Advantages of TDZs
- Profits derived from software development, R&D, and design activities are exempt from income and corporate taxes until December 31, 2023.
- Sales of application software produced exclusively in TDZs are exempt from VAT until December 31, 2023. Examples include software for system management, data management, business applications, different business domains, the internet, mobile phones and military command and control systems.
- Remuneration for R&D, design and support personnel employed in the zone is exempt from all taxes until December 31, 2023. The number of support personnel covered by the exemption may not exceed 10 percent of the total number of those involved in R&D, though.
- Investments for the production of technological products developed based on the outcome of R&D projects conducted in the TDZ may be made in the TDZ if deemed suitable by the operator company and allowed by the Ministry of Science, Industry and Technology (MoSIT).
- 50 percent of the employer’s share of the social security premium will be paid by the government until December 31, 2023.
- Custom duty exemption for imported products and stamp duty exemption for applicable documents within the scope of R&D, design, and software development projects.