The 2016 turnover of Rezekne SEZ commercial companies has been the highest throughout the history of Rezekne SEZ
The special economic zone of Rezekne, having been successful for many years, offers both local entrepreneurs and potential investors active in the territory of Rezekne SEZ, the opportunity to receive significant support for entrepreneurship. Companies that have concluded a contract with the Rēzekne SEZ manager may receive tax relief up to 55% of the amount of the investment project: up to 100% real estate tax credit and 80% corporate tax credit. In an interview in 2016, Sandra Ežmala, manager of Rezekne SEZ, reveals how Rezekne SEZ has been in 2016 and which Rēzekne SEZ Board expects as of 2017.
In 2016, foreign direct investment flows in Latvia have been three times smaller than in the pre-crisis period, similar to in all Baltic countries. How do you assess the attraction of foreign direct investment in the year of Rezekne SEZ?
in recent years, the attraction of investments in both Latvia and Europe is hampered by political instability and slow economic growth. These factors have also affected investment attraction in Rezekne SEZ in 2016. This is confirmed by the fact that the status OF Rezekne SEZ has been acquired by 1 commercial company in 2016, while in previous years the status of the company was acquired by 2 commercial companies. However, it should be noted that the investment projects launched in previous years were closed in 2016, so that the year has been successful.
What are the most important developments in Rēzekne SEZ in 2016?
- The commercial company of Rezekne SEZ was acquired by RSEZ SIA “LATSTAB” in 2016, which produces various spectrum and application towers and masts, lighting poles, steel foundations etc. It should also be noted that in the open project competition for the receipt of aid from the Rēzekne SEZ Commercial Support Fund in 2016, two projects of Rezekne SEZ, “IRBIS Technology” RSEZ SIA and RSEZ “REDIUS” SIA, were supported, with total co-financing of EUR 11 852, eur 80. In the last year of 2016, the fifth year was awarded the award for the winners of the Award of Rēzekne SEZ commercial companies: “NewFuels” RSEZ SIA, “VEREMS” RSEZ SIA and “Rezekne Dzirnavnieks” RSEZ AS.
You mentioned that 2016 has been successful. Who confirms this?
- At the end of 2016, we identified information on turnover in 9 Rēzekne SEZ commercial companies from 18. With full confidence, we can say that in 2016, the turnover has been the highest in the entire history of Rezekne SEZ – almost 80 million euros. In addition, the turnover of major commercial companies has increased by more than 10 %.
This year, Rezekne SEZ is also celebrating his 20 th anniversary. What are the future plans of Rezekne SEZ and what is expected from the anniversary year?
- the beginning of 2017 with the formulation of a new vision for the next decade. In total, the commercial companies OF Rezekne SEZ have invested almost eur 150 million, of which around 120 million euro in the last 10 years, and almost 80 million euro in the last 5 years. The last 5 years have been the most successful in attracting investments, so we intend to make administrative work even more efficient in the future and improve cooperation with partners, ensuring as successful investment as the last 10 years.
Regarding the special economic zone of Rezekne:
Rezekne SEZ was established on 23 April 1997 on the basis of the “Rēzekne Special Economic Zone Act”. This Law prescribes the procedures for the administration and utilisation of Rezekne SEZ, requirements for the performance of commercial activities and investments, as well as the functions and tasks of the Rēzekne SEZ administration.
The Law on the Application of Taxes in Free Ports and Special Economic Zones is laid down in the Law on the Application of Tax Facilities in Free Ports and Special Economic Zones. Capital companies registered in Rezekne SEZ may receive both direct tax discounts (real estate tax, corporate tax) and indirect tax relief, forming free zones in THE territory OF THE RSEZ, as well as making investments. Tax relief for Rezekne SEZ will be applicable until 31 December 2035. The total area of Rezekne SEZ is 1155 ha, which includes the administrative territory OF the municipality of Rēzekne and Rezekne, Griškānu and Ozolaines parish. With the status of Rezekne SEZ, 18 commercial companies are active in early 2017.
Prepared by:
Rēzekne SEZ Board external communications organizer Baiba Baltace