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Under Law No. 550-VIQD, dated June 22 and entered into force on July 17, 2022, the following changes, among others, are introduced into the Alat Free Economic Zone Regime approved in the Law of the Alat Free Economic Zone from May 2018. The regime is otherwise known for delimiting the Zone and regulating within it the applicability of the laws of the Republic, the main economy. At the same time, the entry into force of certain provisions of the law remains pending the promulgation by the zone authority of the relevant internal rules:
- previously, a resident of the Zone was any individual residing therein; now, unless the administration of the zone decides otherwise, residents are natural persons who do not engage in commercial activity and who hold a residence permit in the zone
- a main economy taxpayer has been defined as a taxpayer established under the laws of the main economy and operating in both the main economy and the Zone whose operations are governed by the laws of the main economy
- the administration of the Zone has been recognized the right to make transactions, to acquire and exercise real and intangible rights, and to act before the courts as plaintiff and defendant
- the following laws of the main economy will apply in the Zone: (i) criminal law and (ii) the fight against money laundering and the financing of terrorism (fight against the legalization of funds and other assets obtained from criminal manner and financing of terrorism)
- the administration of the Zone, the administrative enterprises of the Zone and, in the cases prescribed by the administration of the Zone, the entities of the Zone operating in the Zone are exempt from the taxes of the Zone in connection with their operations in the Area
- the supply of goods, labor and services between the main economy and the Zone will now be considered their export and import, respectively
- income tax is governed by the rules of the zone and, to the extent permitted by those rules, the rules of the main economy
- no tax is withheld for supplies from main economy taxpayers to the zone administration, zone administration enterprises and zone entities
- with the exception of customs processing fees, no customs fees, including customs duties and taxes, apply to goods and transportation imported into and exported from the Zone by the administration of the Zone, the enterprises administrative authorities of the Zone and the entities of the Zone; the same gestures vis à vis the Zone by taxpayers of the main economy are subject to the laws of the main economy
- civil, commercial, social and administrative disputes are no longer among the disputes subject to the exclusive jurisdiction of the dispute settlement bodies of the Zone
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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